Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TUCOWS INC /PA/ | ||
Trading Symbol | tcx | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,691,106 | ||
Entity Public Float | $ 253,600,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 909,494 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 7,723,253 | $ 8,271,377 |
Accounts receivable, net of allowance for doubtful accounts of $122,095 as of December 31, 2015 and $125,766 as of December 31, 2014 | 7,171,388 | 6,789,685 |
Inventory | 903,775 | 393,774 |
Prepaid expenses and deposits | 5,067,790 | 3,697,292 |
Prepaid domain name registry and ancillary services fees, current portion | 44,708,041 | 44,614,858 |
Other assets (note 4) | 8,199,000 | |
Deferred tax asset, current portion (note 10) | 3,243,718 | 2,498,196 |
Income taxes recoverable (note 10) | 2,292,915 | 997 |
Total current assets | 71,110,880 | 74,465,179 |
Prepaid domain name registry and ancillary services fees, long-term portion | 11,040,929 | 11,764,765 |
Property and equipment (note 5) | 7,126,676 | 1,609,787 |
Deferred tax asset, long-term portion (note 10) | 4,377,374 | 4,880,423 |
Intangible assets (note 6) | 14,469,677 | 14,202,585 |
Goodwill (note 6) | 21,005,143 | 18,873,127 |
Total assets | 129,130,679 | 125,795,866 |
Current liabilities: | ||
Accounts payable | 4,166,135 | 3,579,920 |
Accrued liabilities | 5,855,686 | 3,941,549 |
Customer deposits | 5,136,909 | 4,461,727 |
Derivative instrument liability (note 8) | 2,027,086 | 1,115,805 |
Deferred rent, current portion | 19,463 | |
Loan payable (note 9) | 3,500,000 | |
Deferred revenue, current portion | 56,646,390 | 55,495,566 |
Accreditation fees payable, current portion | 465,300 | 466,201 |
Income taxes payable (note 10) | 444,053 | 473,480 |
Total current liabilities | 78,261,022 | 69,534,248 |
Deferred revenue, long-term portion | 14,947,639 | 15,610,753 |
Accreditation fees payable, long-term portion | 118,480 | 128,243 |
Deferred rent, long-term portion | 100,864 | 92,878 |
Other liabilities (note 14) | 1,459,960 | |
Deferred tax liability (note 10) | 4,876,691 | 4,787,351 |
Redeemable non-controlling interest (note 3) | 3,036,598 | |
Stockholders' equity (note 11) | ||
Preferred stock - no par value, 1,250,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value, 250,000,000 shares authorized;10,685,599 shares issued and outstanding as of December 31, 2015 and 11,329,732 shares issued and outstanding as of December 31, 2014 | 14,530,633 | 14,130,059 |
Additional paid-in capital | 8,526,395 | 29,090,058 |
Retained earnings (deficit) | 4,381,849 | (6,955,283) |
Accumulated other comprehensive income (loss) | (1,109,452) | (622,441) |
Total stockholders' equity | 26,329,425 | 35,642,393 |
Total liabilities and stockholders' equity | $ 129,130,679 | $ 125,795,866 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts (in Dollars) | $ 122,095 | $ 125,766 |
Preferred stock, shares authorized | 1,250,000 | 1,250,000 |
Preferred stock - shares issued | 0 | 0 |
Preferred stock - shares outstanding | 0 | 0 |
Preferred stock - no par value (in Dollars per share) | $ 0 | $ 0 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 10,685,599 | 11,329,732 |
Common stock shares outstanding | 10,685,599 | 11,329,732 |
Common stock - no par value (in Dollars per share) | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net revenues (note 18) | $ 172,939,499 | $ 147,667,107 | $ 129,934,904 |
Cost of revenues (note 18): | |||
Cost of revenues | 113,089,970 | 101,861,002 | 92,960,321 |
Network expenses | 5,464,777 | 4,554,635 | 4,835,939 |
Depreciation of property and equipment (note 5) | 1,144,989 | 699,670 | 627,973 |
Amortization of intangible assets (note 6) | 38,520 | 83,790 | |
Total cost of revenues | 119,738,256 | 107,115,307 | 98,508,023 |
Gross profit | 53,201,243 | 40,551,800 | 31,426,881 |
Expenses: | |||
Sales and marketing | 18,537,810 | 15,394,065 | 12,141,036 |
Technical operations and development | 4,502,845 | 4,305,715 | 4,158,603 |
General and administrative (note 13) | 10,661,949 | 9,459,008 | 7,523,906 |
Depreciation of property and equipment (note 5) | 259,307 | 226,432 | 215,447 |
Amortization of intangible assets (note 6) | 224,206 | 596,620 | 876,120 |
Impairment of indefinite life intangible assets (note 6) | 206,116 | 577,145 | |
Loss on currency forward contracts (note 8) | 792,900 | 357,760 | 357,109 |
Total expenses | 35,185,133 | 30,916,745 | 25,272,221 |
Income from operations | 18,016,110 | 9,635,055 | 6,154,660 |
Other income (expense): | |||
Interest expense, net | (159,025) | (206,730) | (354,857) |
Other income, net (note 14) | 85,872 | ||
Total other income (expense) | (73,153) | (206,730) | (354,857) |
Income before provision for income taxes | 17,942,957 | 9,428,325 | 5,799,803 |
Provision for income taxes (note 10) | 6,569,227 | 3,054,229 | 1,619,339 |
Net income before redeemable non-controlling interest | 11,373,730 | 6,374,096 | 4,180,464 |
Redeemable non-controlling interest | (284,509) | ||
Net loss attributable to redeemable non-controlling interest | 284,509 | ||
Net income | 11,373,730 | 6,374,096 | 4,180,464 |
Other comprehensive income (loss), net of tax | |||
Unrealized income (loss) on hedging activities (note 8) | (2,031,465) | (1,004,115) | (470,779) |
Net amount reclassified to earnings (note 8) | 1,544,454 | 626,655 | 181,694 |
Other comprehensive income (loss), net of tax of $287,996 (2014 : $196,623, 2013 : $150,587) | (487,011) | (377,460) | (289,085) |
Comprehensive income for the year | $ 10,886,719 | $ 5,996,636 | $ 3,891,379 |
Basic earnings per common share (note 15) (in Dollars per share) | $ 1.04 | $ 0.57 | $ 0.40 |
Shares used in computing basic earnings per common share (note 15) (in Shares) | 10,968,500 | 11,220,874 | 10,468,250 |
Diluted earnings per common share (note 15) (in Dollars per share) | $ 1 | $ 0.54 | $ 0.37 |
Shares used in computing diluted earnings per common share (note 15) (in Shares) | 11,360,084 | 11,730,398 | 11,281,409 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other comprehensive income (loss), tax | $ 287,996 | $ 196,623 | $ 150,587 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances at Dec. 31, 2012 | $ 10,084,417 | $ 33,931,529 | $ (17,509,843) | $ 44,104 | $ 26,550,207 |
Balances (in Shares) at Dec. 31, 2012 | 11,081,340 | ||||
Exercise of stock options | $ 2,626,352 | (1,134,178) | $ 1,492,174 | ||
Exercise of stock options (in Shares) | 890,034 | 890,034 | |||
Repurchase and retirement of shares (note 11) | $ (851,502) | (5,686,114) | $ (6,537,616) | ||
Repurchase and retirement of shares (note 11) (in Shares) | (1,064,299) | (1,064,299) | |||
Cancellation of restricted stock (in Shares) | (12) | ||||
Income tax effect related to stock options exercised | 1,090,171 | $ 1,090,171 | |||
Stock-based compensation (note 12) | 430,903 | 430,903 | |||
Net income | 4,180,464 | 4,180,464 | |||
Other comprehensive income (loss) | (289,085) | (289,085) | |||
Balances at Dec. 31, 2013 | $ 11,859,267 | 28,632,311 | (13,329,379) | (244,981) | 26,917,218 |
Balances (in Shares) at Dec. 31, 2013 | 10,907,063 | ||||
Exercise of stock options | $ 2,365,825 | (886,900) | $ 1,478,925 | ||
Exercise of stock options (in Shares) | 502,061 | 502,061 | |||
Repurchase and retirement of shares (note 11) | $ (95,033) | (1,086,825) | $ (1,181,858) | ||
Repurchase and retirement of shares (note 11) (in Shares) | (79,392) | (79,392) | |||
Income tax effect related to stock options exercised | 1,888,734 | $ 1,888,734 | |||
Stock-based compensation (note 12) | 542,738 | 542,738 | |||
Net income | 6,374,096 | 6,374,096 | |||
Other comprehensive income (loss) | (377,460) | (377,460) | |||
Balances at Dec. 31, 2014 | $ 14,130,059 | 29,090,058 | (6,955,283) | (622,441) | 35,642,393 |
Balances (in Shares) at Dec. 31, 2014 | 11,329,732 | ||||
Exercise of stock options | $ 1,784,112 | (980,976) | $ 803,136 | ||
Exercise of stock options (in Shares) | 517,998 | 517,998 | |||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration | (1,306,981) | $ (1,306,981) | |||
Shares deducted from exercise of stock options for payment of witholding taxes and exercise consideration (in Shares) | (99,675) | (99,675) | |||
Repurchase and retirement of shares (note 11) | $ (1,383,538) | (22,232,748) | $ (23,616,286) | ||
Repurchase and retirement of shares (note 11) (in Shares) | (1,062,456) | (1,062,456) | |||
Income tax effect related to stock options exercised | 3,431,017 | $ 3,431,017 | |||
Stock-based compensation (note 12) | 526,025 | 526,025 | |||
Net income | 11,373,730 | 11,373,730 | |||
Accretion of redeemable non-controlling interest in Ting Virginia, LLC. | (36,598) | (36,598) | |||
Other comprehensive income (loss) | (487,011) | (487,011) | |||
Balances at Dec. 31, 2015 | $ 14,530,633 | $ 8,526,395 | $ 4,381,849 | $ (1,109,452) | $ 26,329,425 |
Balances (in Shares) at Dec. 31, 2015 | 10,685,599 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income for the year | $ 11,373,730 | $ 6,374,096 | $ 4,180,464 |
Items not involving cash: | |||
Depreciation of property and equipment | 1,404,296 | 926,102 | 843,420 |
Amortization of intangible assets | 262,726 | 596,620 | 959,910 |
Impairment of indefinite life intangible asset | 206,116 | 577,145 | |
Deferred income taxes (recovery) | 134,861 | (1,084,470) | (247,371) |
Excess tax benefits from share-based compensation expense | (1,090,171) | ||
Amortization of deferred rent | 27,449 | 16,899 | 21,829 |
Disposal of domain names | 24,066 | 26,878 | 52,513 |
Other income (note 14) | (85,872) | ||
Loss on change in the fair value of forward contracts | 136,276 | 50,624 | 496,207 |
Stock-based compensation | 526,025 | 542,738 | 430,903 |
Change in non-cash operating working capital: | |||
Accounts receivable | (220,188) | (1,484,282) | (892,138) |
Inventory | (442,806) | (84,088) | 277,418 |
Prepaid expenses and deposits | (1,282,054) | 611,747 | 772,369 |
Prepaid domain name registry and ancillary services fees | 630,653 | (331,453) | 1,440,720 |
Income taxes recoverable | (2,321,345) | (75,744) | 1,023,638 |
Accounts payable | 249,931 | 1,152,042 | 529,537 |
Accrued liabilities | 1,691,356 | 28,515 | 1,390,805 |
Customer deposits | 675,182 | (39,219) | (454,725) |
Deferred revenue | 366,273 | 1,088,083 | (982,115) |
Accreditation fees payable | (10,664) | (14,889) | (49,106) |
Net cash provided by operating activities | 13,346,011 | 8,877,344 | 8,704,107 |
Financing activities: | |||
Proceeds received on exercise of stock options | 803,136 | 1,478,924 | 1,492,174 |
Payment of tax obligations resulting from net exercise of stock options | (1,306,981) | ||
Excess tax benefits from share-based compensation expense | 3,431,017 | 1,888,734 | 1,090,171 |
Repurchase of common stock | (23,616,286) | (1,181,857) | (6,537,616) |
Proceeds received on loan payable | 3,500,000 | 5,200,000 | |
Repayment of loan payable | (6,300,000) | (2,600,000) | |
Net cash used in financing activities | (17,189,114) | (4,114,199) | (1,355,271) |
Investing activities: | |||
Additions to property and equipment | (2,967,360) | (711,656) | (1,345,627) |
Acquisition of other assets | (8,199,000) | ||
Gross proceeds from the waiver of rights to .online registry (note 14) | 6,619,831 | ||
Net cash provided by (used in) investing activities | 3,294,979 | (8,910,656) | (1,345,627) |
Increase in cash and cash equivalents | (548,124) | (4,147,511) | 6,003,209 |
Cash and cash equivalents, beginning of year | 8,271,377 | 12,418,888 | 6,415,679 |
Cash and cash equivalents, end of year | 7,723,253 | 8,271,377 | 12,418,888 |
Supplemental cash flow information: | |||
Interest paid | 173,197 | 207,777 | 372,853 |
Income taxes paid, net | 3,132,105 | $ 2,172,047 | $ 793,000 |
Ting Virginia, LLC [Member] | |||
Investing activities: | |||
Remaining payment for the acquisition of Ting Virginia, LLC., net of cash of $21,423 (note 3) | $ (357,492) |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Ting Virginia, LLC [Member] | |
Net Cash | $ 21,423 |
Note 1 - Organization of the Co
Note 1 - Organization of the Company | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization of the Company: Tucows Inc. (the “Company”) provides simple useful services that help people unlock the power of the Internet. The Company provides US consumers and small businesses with mobile phone services nationally and high-speed fixed Internet access in selected towns. The Company is also a global distributor of Internet services, including domain name registration, digital certificates, and email. It provides these services primarily through a global Internet-based distribution network of Internet Service Providers, web hosting companies and other providers of Internet services to end-users. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Significant accounting policies: The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are stated in U.S. dollars, except where otherwise noted. Certain of the prior year comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year. In December 2013, our Board of Directors authorized a one-for-four share consolidation of our common stock, in the form of a reverse stock split, as further described in note 11. All share information related to shares outstanding and earnings per share have been retroactively adjusted to reflect this share consolidation. (a) Basis of presentation These consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated on consolidation. Investments over which the Company is unable to exercise significant influence are recorded at cost and written down only when there is evidence that a decline in value that is other than temporary has occurred. In prior periods, the Company recorded the effective portion of the gain or loss upon settlement of hedged currency forward contracts in “Loss on currency forward contracts” and reclassified the same amount from “General and administrative expense” to the income statement line item for the hedged item. The Company has determined that the reclassification of the effective portion of the gain or loss upon settlement amounts are more appropriately reclassified from “Loss on currency forward contracts” to the income statement line item for the hedged item. As a result, losses of $1.0 million and $0.3 million for the years ended December 31, 2014 and 2013 respectively, have been reclassified to “General and administrative expense” from “Loss on currency forward contracts”. As a result of this reclassification, there was no change to previously reported net income, income from operations, net revenues, gross profit, reported cash flows or the amounts recorded in the consolidated balance sheets. (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for or carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three months or less are classified as cash and cash equivalents. Cash and cash equivalents are stated at cost which approximates market value. (d) Inventory Inventory primarily consists of mobile devices and other accessories, and is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device or accessory shipped. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may be required to write down the value of inventory. (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Asset Rate Computer equipment 30 % Computer software 100 % Furniture and equipment 20 % Vehicles and tools 20 % Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted future cash flows expected to result from the use of the group of assets and its eventual disposition is less than its carrying amount, it is considered to be impaired. The amount of the impairment loss recognized is measured as the amount by which the carrying value of the asset exceeds the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the assets. Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not on a specific asset basis. For assets that are retired, the estimated historical cost and related accumulated depreciation is removed. (f) Derivative Financial Instruments The Company uses derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging” ("Topic 815"), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in our derivative financial instruments’ fair values be recognized in earnings, unless specific hedge accounting and documentation criteria are met (i.e. the instruments are accounted for as hedges). The Company recorded the effective portions of the gain or loss on derivative financial instruments that were designated as cash flow hedges in accumulated other comprehensive income in our accompanying Consolidated Balance Sheets. Any ineffective or excluded portion of a designated cash flow hedge, if applicable, is recognized in net income. For certain contracts, the Company has not complied with the documentation standards required for its forward foreign exchange contracts to be accounted for as hedges and has, therefore, accounted for such forward foreign exchange contracts at their fair values with the changes in fair value recorded in net income. The fair value of the forward exchange contracts are determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's credit risk. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. Our discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates. (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth quarter of each year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has three operating segments, Domain Services and Network Access - Mobile Services and Network Access – Other Services. The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may be impairment, quantitative impairment testing is required. In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets not subject to amortization Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of the portfolio of domain names was less than the carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, levels of advertising revenue generated by the names in the portfolio, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. The fair value of the intangibles in the operating segment is determined using an income approach consistent with that utilized for goodwill impairment testing outlined above. Where the fair value of the aggregated portfolio of domain names is less than the aggregated carrying amount of the portfolio, impairment is recognized. Intangible Assets subject to amortization Intangible assets subject to amortization, consist of technology, brand and customer relationships and are amortized on a straight line basis over their estimated useful lives as follows: (in years) Technology 2 - 7 Brand 7 Customer relationships 4 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. (h) Revenue recognition The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. The Company derives revenues from the provisioning of mobile phone and fixed Internet access services primarily through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising revenue includes revenue derived from cost-per action advertising links we display on third party websites who provide syndicated pay-per-click advertising on OpenSRS Domain Expiry Stream domains and the Company’s Portfolio Domains. In addition, the Company uses third party partners to derive pay-per-click advertising on the Tucows.com website. Advertising revenue is recognized on a monthly basis based on the number of cost-per-action services that were provided in the month. Impression based advertising revenue and other revenues are recognized ratably over the period in which it is presented. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impressions are achieved. In those cases where payment is not received at the time of sale, additional conditions for recognition of revenue are that the collection of the related accounts receivable is reasonably assured and the Company has no further performance obligations. The Company records costs that reflect expected refunds, rebates and credit card charge-backs as a reduction of revenues at the time of the sale based on historical experiences and current expectations. The Company establishes provisions for possible uncollectible accounts receivable and other contingent liabilities which may arise in the normal course of business. Historically, credit losses have been within the Company’s expectations and the provisions the Company has established have been appropriate. However, the Company has, on occasion, experienced issues which have led to accounts receivable not being fully collected. Should these issues occur more frequently, additional provisions may be required. (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other Internet services, on both a wholesale and retail basis, net of external commissions. (j) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. (k) Prepaid domain name registry fees Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. (l) Translation of foreign currency transactions The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. (m) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current unless the liability is expected to be settled in cash within 12 months of the reporting date. The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. The Company has not made any ITC claims for the years ended December 31, 2015 and 2014. (n) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. (o) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. (p) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three months or less from the date of purchase. With respect to accounts receivable, the Company performs periodic credit evaluations of the financial condition of its customers and typically does not require collateral from them. The counterparty to any forward foreign exchange contracts is a major commercial bank which management believes does not represent a significant credit risk. Management assesses the need for allowances for potential credit losses by considering the credit risk of specific customers, historical trends and other information. (q) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1—Quoted prices in active markets for identical assets or liabilities Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 measurements) approximate their carrying values due to the relatively short periods to maturity of the instruments. The fair value of the derivative financial instruments are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 measurement) which takes into consideration the Company and the counterparty credit risk. (r) Segment reporting The Company operates in three operating segments, Domain Services, Network Access – Mobile Services and Network Access – Other Services. The Company’s Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. The Company’s Network Access – Mobile Services revenues, which consist primarily of mobile telephony services, are generated through its business operations in the United States. The Company’s Network Access - Other Services consists of the provisioning of high speed Internet access, Internet hosting and consulting services. The Company’s assets are located in Canada, the United States, Germany and the Netherlands. (s) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2015, the Company adopted the Accounting Standards Update (“2014-08”), Presentation of Financial Statements and Property, Plant and Equipment: Discontinued Operations and Disclosures of Disposals of components of an Entity. The adoption of ASU 2014-08 did not have a material impact on the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-10) In September 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) ("ASU 2015-16"), which relates to the simplification of the accounting for measurement-period adjustments in business combinations. This standard update eliminates the requirement to account for measurement-period adjustments retrospectively and requires that an acquirer record the effects on earnings of any changes resulting from the change in provisional amounts, calculated as if the accounting had been completed at the acquisition date in the reporting period in which the adjustments are determined. We will adopt this update during the first quarter of 2016. The adoption of this update is not expected to have a significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"), which provides guidance in determining whether fees for purchasing cloud computing services (or hosted software solutions) are considered internal-use software or should be considered a service contract. The cloud computing agreement that includes a software license should be accounted for in the same manner as internal-use software if the customer has the contractual right to take possession of the software during the hosting period without significant penalty and it is feasible to either run the software on customer’s hardware or contract with another vendor to host the software. Arrangements that don’t meet the requirements for internal-use software should be accounted for as a service contract. ASU 2015-05 will be effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company) . We will adopt this update in the first quarter of 2016. The adoption of this update is not expected to have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest Imputation of Interest Subtopic 835-30 In August 2014, the FASB issued ASU No 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. Acquisitions: On February 27, 2015, Ting Fiber, Inc., one of our wholly owned subsidiaries, acquired a 70% ownership interest in the newly formed Ting Virginia, LLC and its subsidiaries, Blue Ridge Websoft, LLC (doing business as Blue Ridge Internet Works), Fiber Roads, LLC and Navigator Network Services, LLC (the “BRI Group”) for consideration of approximately $3.5 million. The Company advanced in escrow $3,125,000 during the year ended December 31, 2014, and paid the remaining purchase price of $357,492 during the year ended December 31, 2015. Ting Virginia, LLC was an independent Internet service provider in Charlottesville, Virginia, doing business primarily as Blue Ridge Internet Works. The BRI Group provides high speed internet access, Internet hosting and network consulting services to over 3,000 customers in central Virginia. The purchase price was primarily satisfied through an advance under our 2012 DLR Loan facility. Ting Fiber, Inc. and the selling shareholders (the “Minority Shareholders”) also agreed to certain put and call options with regard to the remaining 30% interest in Ting Virginia, LLC retained by the Minority Shareholders. On the second anniversary of the closing date, Ting Fiber, Inc. may exercise a call option to purchase an additional 20% ownership interest in Ting Virginia, LLC. Contingent upon the exercise of the call option by Ting Fiber, Inc. the Minority Shareholders may exercise a put option within 7 days following the exercise of the call option by Ting Fiber, Inc., to sell their remaining 10% ownership interest in Ting Virginia, LLC. The consideration to be exchanged for the shares acquired or sold under the options shall be $100,000 per percentage point of the additional equity interest acquired. In addition, on the fourth anniversary of the closing date, the Minority Shareholders may exercise a put option under which Ting Fiber, Inc. shall be obligated to purchase the Minority Shareholders’ remaining interest for $120,000 per percentage point of the additional equity interest acquired. The Company has determined that the put options described above are embedded within the non-controlling interest shares that are subject to the put options. The redemption feature requires classification of the Minority Shareholders’ Interest in the Consolidated Balance Sheets outside of equity under the caption “Redeemable non-controlling interest”. The present value of the liability at the acquisition date was $3,000,000 and is being accreted to the estimated liability amount using a rate of 1.6% from the acquisition date. During the year, this amount was increased by $36,598 to $3,036,598, to reflect the present value of this Redeemable non-controlling interest as at December 31, 2015. The purchase consideration is comprised as follows: Cash $ 3,135,140 Less refund from working capital adjustment (50,000 ) Repayment of debt 418,775 Redeemable non-controlling interest 3,000,000 $ 6,503,915 The following table represents the purchase price allocation based on the estimated fair values of the assets Current assets (including cash of $21,423) $ 338,577 Current liabilities (529,702 ) Property and equipment, including: Fiber network 3,456,024 Computer equipment 200,000 Furniture and equipment 5,000 Vehicles 92,000 Leasehold improvements 50,000 Intangible assets, including: Network rights 692,000 Customer equipment and installations 68,000 Goodwill 2,132,016 Net assets acquired $ 6,503,915 The goodwill recorded on the acquisition is expected to be deductible for tax purposes. The fair value of current assets acquired includes accounts receivable with a fair value of $0.2 million. All accounts receivable acquired at acquisition are expected to be collectable. During the year ended December 31, 2015 this acquisition resulted in additional revenues of $3.3 million. The acquisition had no significant impact on net income for the year ended December 31, 2015. The Company acquired new classes of assets in this acquisition, namely fiber network and vehicles. The Company has accordingly, in connection with its depreciation policies, added additional disclosure in note 2 (e) above. |
Note 4 - Other Assets
Note 4 - Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | 4. Other assets: Other assets are comprised of the following: Year ended Year ended Amounts in escrow advanced to acquire a controlling ownership interest in Ting Virginia, LLC (see note 3) $ — $ 3,125,000 Amounts advanced to the joint venture which was terminated in February 2015 (see note 14) — 5,074,000 $ — $ 8,199,000 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and equipment: Property and equipment consist of the following: December 31, 2015 December 31, 2014 Computer equipment $ 6,865,906 $ 5,902,905 Computer software 1,171,806 1,170,866 Furniture and equipment 1,094,455 757,118 Vehicles and tools 275,424 — Fiber network 4,633,942 — Customer equipment and installations 242,370 — Leasehold improvements 55,719 — 14,339,622 7,830,889 Less: Accumulated depreciation 7,212,946 6,221,102 $ 7,126,676 $ 1,609,787 Depreciation of property and equipment: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Depreciation of property and equipment $ 1,404,296 $ 926,102 $ 843,420 During the years ended December 31, 2015 and 2014, fully depreciated property, plant and equipment with a cost of $0.4 million, and $1.7 million respectively, were written off. |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of purchase price over the fair value of tangible or identifiable intangible assets acquired and liabilities assumed in our acquisitions. Goodwill consists of the following: December 31, 2015 December 31, 2014 Boardtown Corporation $ 2,044,847 $ 2,044,847 Hosted Messaging Assets of Critical Path 4,072,297 4,072,297 Innerwise Inc. 5,801,040 5,801,040 Mailbank.com Inc. 6,072,623 6,072,623 EPAG Domainservices GmbH 882,320 882,320 Ting Fiber, Inc. (note 3) 1,426,893 — Ting Virginia, LLC (note 3) 705,123 — Total $ 21,005,143 $ 18,873,127 Goodwill is not amortized, but is subject to an annual impairment test. The Company performed an impairment analysis as outlined in note 2(g) and there were no indications of impairment in the 2015 and 2014 impairment tests. Other Intangible Assets: Intangible assets consist of acquired technology, brand, customer relationships, surname domain names, direct navigation domain names and network rights. The Company treats its intangible assets consisting of surname domain names and direct navigation domain names as indefinite life intangible assets. The Company has the exclusive right to these domain names as long as the annual renewal fees are paid to the applicable registry. Renewals occur routinely and at a nominal cost. The indefinite life intangible assets are not amortized, but are subject to impairment tests performed throughout the year. During 2015, we assessed that certain of the domain names that were originally acquired in the June 2006 acquisition of Mailbank.com Inc. that were up for renewal, should not be renewed. During the year ended December 31, 2015, domain names, with a book value of $206,116, were not renewed and were recorded as an impairment of indefinite life intangible assets. During the year ended December 31, 2014, domain names, with a book value of $577,145, were not renewed and were recorded as an impairment of indefinite life intangible assets. No impairment was recorded on indefinite-life intangible assets during the year ended December 31, 2013. Intangible assets, comprising technology, brand, customer relationships and network rights related to the acquisition of Boardtown Corporation in April 2004, the acquisition of the Hosted Messaging Business of Critical Path, Inc. in January 2006, the acquisition of Mailbank.com Inc. in June 2006, the acquisition of Innerwise, Inc. in July 2007, the acquisition of EPAG Domainservices GmbH in August 2011 and the acquisition of Ting Virginia, LLC in February 2015, are being amortized on a straight-line basis over periods of two to fifteen years. Acquired intangible assets consist of the following: Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, December 31, 2013 $ 12,096,712 $ 1,974,166 $ 224,650 $ 1,107,700 $ - $ 15,403,228 Additions to/(disposals from) domain portfolio, net (6,490 ) (20,388 ) - - - (26,878 ) Impairment of indefinite life intangible assets (564,598 ) (12,547 ) - - - (577,145 ) Amortization expense - - (114,140 ) (482,480 ) - (596,620 ) Balance December 31, 2014 11,525,624 1,941,231 110,510 625,220 - 14,202,585 Additions to/(disposals from) domain portfolio, net (6,815 ) (17,251 ) - - - (24,066 ) Impairment of indefinite life intangible assets (179,454 ) (26,662 ) - - - (206,116 ) Amortization expense - - (30,840 ) (193,366 ) (38,520 ) (262,726 ) Acquisition of Ting Virginia, LLC (note 3) - - - 68,000 692,000 760,000 Balance December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 $ 14,469,677 The following table shows the estimated amortization expense for each of the next 5 years, assuming no further additions to acquired intangible assets are made: Year ending December 31, 2016 $ 274,116 2017 274,116 2018 169,676 2019 46,128 2020 46,128 Thereafter 422,840 Total $ 1,233,004 |
Note 7 - Fair Value Measurement
Note 7 - Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 7. Fair value measurement: For financial assets and liabilities recorded in our financial statements at fair value we utilize a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2015: December 31, 2015 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 2,027,086 $ — $ 2,027,086 Total Liabilities $ — $ 2,027,086 $ — $ 2,027,086 The following table provides a summary of the fair values of the Company’s derivative instruments measured at fair value on a recurring basis as at December 31, 2014: December 31, 2014 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 1,115,805 $ — $ 1,115,805 Total Liabilities $ — $ 1,115,805 $ — $ 1,115,805 |
Note 8 - Derivative Instruments
Note 8 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 8. Derivative instruments and hedging activities: Foreign currency forward contracts In October 2012, the Company entered into a hedging program with a Canadian chartered bank to limit the potential foreign exchange fluctuations incurred on its future cash flows related to a portion of payroll, rent and payments to Canadian domain name registry suppliers that are denominated in Canadian dollars and are expected to be paid by its Canadian operating subsidiary. As part of its risk management strategy, the Company uses derivative instruments to hedge a portion of the foreign exchange risk associated with these costs. The Company does not use these forward contracts for trading or speculative purposes. These forward contracts typically mature between one and eighteen months. The Company has designated certain of these transactions as cash flow hedges of forecasted transactions under ASC Topic 815. For certain contracts, as the critical terms of the hedging instrument, and of the entire hedged forecasted transaction, are the same, in accordance with ASC Topic 815, the Company has been able to conclude that changes in fair value and cash flows attributable to the risk of being hedged are expected to completely offset at inception and on an ongoing basis. Accordingly, unrealized gains or losses on the effective portion of these contracts have been included within other comprehensive income. The fair value of the contracts, as of December 31, 2015 and 2014, is recorded as derivative instrument liabilities. For certain contracts where the hedged transactions are no longer probable to occur, the loss on the associated forward contract is recognized in earnings. As of December 31, 2015, the notional amount of forward contracts that the Company held to sell U.S. dollars in exchange for Canadian dollars was $24.0 million, of which $20.3 million met the requirements of ASC Topic 815 and were designated as hedges (December 31, 2014 - $26.2 million, of which $22.3 million were designated as hedges). Fair value of derivative instruments and effect of derivative instruments on financial performance The effect of these derivative instruments on our consolidated financial statements as of, and for the year ended December 31, 2015, were as follows (amounts presented do not include any income tax effects). Fair value of derivative instruments in the consolidated balance sheets (see note 7) Derivatives Balance Sheet Location December 31, December 31, Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ (1,721,683 ) $ (946,676 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ (305,403 ) $ (169,129 ) Total foreign currency forward contracts Derivative instruments $ (2,027,086 ) $ (1,115,805 ) Movement in AOCI balance for the year ended December 31, 2015 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Other comprehensive income (loss) before reclassifications (3,171,740 ) 1,140,275 (2,031,465 ) Amount reclassified from accumulated other comprehensive income 2,396,733 (852,279 ) 1,544,454 Other comprehensive income (loss) for the year ended December 31, 2015 (775,007 ) 287,996 (487,011 ) Ending AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Movement in AOCI balance for the year ended December 31, 2014 Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2013 $ (372,593 ) $ 127,612 $ (244,981 ) Other comprehensive income (loss) before reclassifications (1,527,171 ) 523,056 (1,004,115 ) Amount reclassified from accumulated other comprehensive income 953,088 (326,433 ) 626,655 Other comprehensive income (loss) for the year ended December 31, 2014 (574,083 ) 196,623 (377,460 ) Ending AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Effects of derivative instruments on income and other comprehensive income (OCI) Derivatives in Cash Flow Hedging Relationship Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, net of tax, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness), net of tax Operating expenses $ (1,205,554 ) Foreign currency forward contracts – year ended December 31, 2015 $ (487,011 ) Cost of revenues (338,900 ) Operating expenses $ (189,526 ) Operating expenses (463,160 ) Foreign currency forward contracts – year ended December 31, 2014 (377,460 ) Cost of revenues (163,495 ) Operating expenses (13,535 ) In addition to the above, for those foreign currency forward contracts not designated as hedges, the Company has recorded a loss of $0.5 million upon settlement and a loss of $0.1 million for the change in fair value of outstanding contracts for the year ended December 31, 2015, in the consolidated statement of comprehensive income. The Company has recorded a loss of $0.3 million upon settlement and a loss of $50,000 for the change in fair value of outstanding contracts for the year ended December 31, 2014, in the consolidated statement of comprehensive income. |
Note 9 - Loan Payable
Note 9 - Loan Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9. Loan payable: The Company has credit agreements (collectively the “Amended Credit Facility”) with the Bank of Montreal (the “Bank” or “BMO”) that were amended on November 19, 2012, and which provide it with access to two revolving demand loan facilities (the “2012 Demand Loan Facilities”), a treasury risk management facility and an operating demand loan. Two Revolving Demand Loan Facilities. The 2012 Demand Loan Facilities are governed by the terms of the Offer Letter, dated as of November 19, 2012, by and between the Company and the Bank and filed with the SEC on November 21, 2012. Under the terms of the Amended Credit Facility, our prior demand loan facilities have been amended to provide an aggregate of $14 million in funds available through the 2012 Demand Loan Facilities, which consist of a demand loan revolving facility (the “2012 DLR Loan”) and a demand loan revolving reducing facility (the “2012 DLRR Loan”). The 2012 DLR Loan accrues interest at the Bank’s U.S. Base Rate plus 1.25%. The Company may elect to pay interest on the 2012 DLRR Loan either at the Bank’s U.S. Base Rate plus 1.25% or LIBOR plus 2.50%. Aggregate advances under the 2012 Demand Loan Facilities may not exceed $14 million and no more than $2 million of such advances may be used to finance repurchases of Company common stock. The 2012 Demand Loan Facilities are subject to an undrawn aggregate standby fee of 0.20% following the first draw, which such fee is payable quarterly in arrears. Repayment of advances under the 2012 DLR Loan consist of interest only payments made monthly in arrears and prepayment is permitted without penalty. The outstanding balance under the 2012 DLR Loan as of December 31st of each year is to be fully repaid within 30 days of December 31st through an equivalent advance made under the 2012 DLRR Loan. Advances under the 2012 DLRR Loan will be made annually and solely for such purpose. Each advance under the 2012 DLRR Loan is to be repaid in equal monthly principal payments plus interest, over a period of four years from the date of such advance. At December 31, 2015, the outstanding balance under the 2012 DLR Loan was $3.5 million (December 31, 2014 - Nil). Both of these financing arrangements remain available to fund future operations of the Company, with no set expiry date. Treasury Risk Management Facility The Amended Credit Facility also provides for a $3.5 million settlement risk line to assist the Company with hedging Canadian dollar exposure through foreign exchange forward contracts and/or currency options. Under the terms of the Amended Credit Facility, the Company may enter into such agreements at market rates with terms not to exceed 18 months. As of December 31, 2015, the Company held contracts in the amount of $24.0 million to trade U.S. dollars in exchange for Canadian dollars. Operating Demand Loan The Amended Credit Facility also provides the Company with a $1.0 million operating demand loan facility to assist in meeting its operational needs (the “Operating Demand Loan”). The Operating Demand Loan accrues interest at the Bank’s U.S. Base Rate plus 1.25%. The Company has also agreed to pay to the Bank a monthly monitoring fee of US$500 with respect to this loan. The Operating Demand Loan is payable on demand at any time, at the sole discretion of the Bank, with or without cause, and the Bank may terminate the Operating Demand Loan at any time. As of December 31, 2015, the Company had no amounts outstanding under its Operating Demand Loan. General Terms The Company’s Amended Credit Facility contains customary representations and warranties, affirmative and negative covenants, and events of default. The Company’s obligations under the Amended Credit Facility are guaranteed and secured by a security interest in substantially all of its assets. The Amended Credit Facility also requires that the Company comply with certain customary non-financial covenants and restrictions. In addition, the Company has agreed to comply with the following financial covenants at all times, which are to be calculated on a rolling four quarter basis: (i) Maximum Total Funded Debt to EBITDA of 2.00:1; and (ii) Minimum Fixed Charge Coverage of 1.20:1. Further, its Maximum Annual Capital Expenditures cannot exceed $3.6 million per year, which limit will be reviewed on an annual basis. For the year ended, December 31, 2015, the Company was in compliance with these covenants. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 10. Income taxes: The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% to income before provision for income taxes as a result of the following: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Income for the year before provision for income taxes $ 17,942,957 $ 9,428,325 $ 5,799,803 Computed expected tax expense $ 6,100,605 $ 3,205,631 $ 1,971,933 Increase (reduction) in income tax expense resulting from: State income taxes 265,489 64,056 14,500 Permanent differences, including foreign exchange 278,959 192,260 13,700 Investment tax credits recovered — — (115,455 ) Other, including alternative minimum tax and adjustments to opening deferred tax assets (75,826 ) (407,718 ) (265,339 ) Provision for income taxes $ 6,569,227 $ 3,054,229 $ 1,619,339 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2015 and 2014 are presented below: December 31, 2015 December 31, 2014 Deferred tax assets: Deferred revenue $ 5,454,284 $ 5,294,767 Foreign tax credit 1,529,075 3,200,961 Amortization (883,466 ) (414,345 ) Accruals, including foreign exchange and other 1,521,199 (702,764 ) Deferred tax assets $ 7,621,092 $ 7,378,619 Deferred income tax asset, current portion $ 3,243,718 $ 2,498,196 Deferred income tax asset, long-term portion 4,377,374 4,880,423 $ 7,621,092 $ 7,378,619 Deferred tax liabilities: Limited life intangible assets $ (169,731 ) $ (208,620 ) Indefinite life intangible assets (4,706,960 ) (4,578,731 ) Total deferred tax liability, long-term portion $ (4,876,691 ) $ (4,787,351 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. Management considers projected future taxable income, uncertainties related to the industry in which the Company operates, and tax planning strategies in making this assessment. The Company had approximately $0.1 million of total gross unrecognized tax benefit as of December 31, 2015 and as of December 31, 2014, which if recognized would favorably affect its income tax rate in future periods. The unrecognized tax benefit relates primarily to prior year Pennsylvania state franchise taxes and other insignificant U.S. state taxes. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not have any significant interest and penalties accrued as of December 31, 2015 and December 31, 2014. Management believes that it is reasonably possible that $0.1 million of the unrecognized tax benefit will decrease in the next twelve months as it is anticipated that the foreign tax authorities will finalize their review of prior years’ taxes owing in Pennsylvania within that period. The following is a reconciliation of Tucows’ change in uncertain tax position: Total Gross Unrecognized Tax Benefits December 31, 2015 December 31, 2014 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits — — Balance, end of year $ 117,000 $ 117,000 |
Note 11 - Common Shares
Note 11 - Common Shares | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Common shares: The Company’s authorized common share capital is 250 million shares of common stock without nominal or par value. On December 31, 2015, there were 10,685,599 shares of common stock outstanding. Share consolidation On December 30, 2013, the Company ceased trading on the NYSE Amex Exchange and began trading on the NASDAQ Exchange under the symbol “TCX”. In December 2013, our Board of Directors authorized a one-for-four share consolidation of our common stock, in the form of a reverse stock split. This consolidation was effective at the opening of trading on December 31, 2013. As a result of the share consolidation, every four shares of our common stock outstanding were automatically combined into one share of our common stock. Each shareholder continues to hold the same percentage of our outstanding common shares. The shares were rounded up to the next whole share for those holders who would have otherwise received fractional shares. The share consolidation was intended to make our common stock available to a broader range of investors and reposition the Company’s trading metrics. All share information related to shares outstanding and earnings per share have been retroactively adjusted to reflect this stock consolidation. Repurchase of common shares: (a) Modified Dutch Tender Offers: On January 7, 2015, the Company successfully concluded a modified “Dutch auction tender offer” that was previously announced in December 2014. Under the terms of the offer, the Company repurchased an aggregate of 193,907 shares of its common stock at a purchase price of $18.50 per share, for a total of $3,587,280, excluding transaction costs of approximately $70,000. The purchase price and all transaction costs were funded from available cash. All shares purchased in the tender offer received the same price and all shares repurchased were immediately retired. As a result of the completion of the tender offer, as of January 7, 2015, the Company had 11,135,825 shares issued and outstanding. (b) Normal Course Issuer Bids: On February 11, 2015, the Company announced a stock buyback program. Under this buyback program, the Company may repurchase up to $20 million of the Company's common stock over the 12-month period that commenced on February 11, 2015. The Company repurchased 214,089 shares under this program during the three months ended March 31, 2015 for a total of $4.1 million. The Company repurchased 25,413 shares under this program during the three months ended June 30, 2015 for a total of $0.5 million. The Company repurchased 398,000 shares under this program during the three months ended September 30, 2015 for a total of $10.0 million. The Company repurchased 231,047 shares under this program during the three months ended December 31, 2015 for a total of $5.4 million. The Company repurchased 868,549 shares under this program during the year ended December 31, 2015 for a total of $20.0 million. On March 5, 2014, the Company announced a stock buyback program. Under this buyback program, the Company may repurchase up to $20 million of the Company's common stock over the 12-month period that commenced on March 4, 2014. The Company repurchased 6,092 shares under this program during the three months ended March 31, 2014 for a total of $82,286. The Company repurchased 73,300 shares under this program during the three months ended September 30, 2014 for a total of $1.1 million. The Company repurchased 79,392 shares under this program during the year ended December 31, 2014 for a total of $1.2 million. Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares and are included in the table on the following page as common stock received in connection with share-based compensation. During the fiscal quarter ended December 31, 2015, certain employees and directors tendered 99,675 shares of common stock having a market value of $23.43 per share, or $2.3 million in the aggregate, as payment for related payroll tax obligations and exercise price of the shares due from the option holder arising from the vesting and settlement of stock option awards. The following table summarizes our share repurchase activity for the periods covered below: Year Ended December 31, 2015 2014 2013 Common stock repurchased on the open market or through tender offer Number of shares 1,062,456 79,392 1,064,299 Aggregate market value of shares (in thousands) $ 23,616 $ 1,182 $ 6,538 Average price per share $ 22.23 $ 14.89 $ 6.14 Common stock received in connection with share-based compensation Number of shares 99,675 — — Aggregate market value of shares (in thousands) $ 2,335 $ — $ — Average price per share $ 23.42 $ — $ — |
Note 12 - Stock Option Plans
Note 12 - Stock Option Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Stock option plans: The Company’s 1996 Stock Option Plan (the “1996 Plan”) was established for the benefit of the employees, officers, directors and certain consultants of the Company. The maximum number of common shares which may be set aside for issuance under the 1996 Plan was 2,787,500 shares, provided that the Board of Directors of the Company has the right, from time to time, to increase such number subject to the approval of the shareholders of the Company when required by law or regulatory authority. Generally, options issued under the 1996 Plan vest over a four-year period. The 1996 Plan expired on February 25, 2006; no options were issued from this plan after that date. On November 22, 2006, the shareholders of the Company approved the Company’s 2006 Equity Compensation Plan (the “2006 Plan”), which was amended and restated effective July 29, 2010 and which serves as a successor to the 1996 Plan. The 2006 Plan has been established for the benefit of the employees, officers, directors and certain consultants of the Company. The maximum number of common shares which have been set aside for issuance under the 2006 Plan is 1.25 million shares. On October 8, 2010, the 2006 Plan was amended to increase the number of shares which have been set aside for issuance by an additional 0.475 million shares to 1.725 million shares. In September 2015, the 2006 Plan was amended to increase the number of shares which have been set aside for issuance by an additional 0.75 million shares to 2.475 million shares. Generally, options issued under the 2006 Plan vest over a four-year period and have a term not exceeding seven years, except for automatic formula grants of non-qualified stock options, which vest after one year and have a five year term. Prior to the September 2015 amendment to the 2006 Plan, automatic formula grants of non-qualified stock options vested immediately upon grant. Our current equity-based compensation plans include provisions that allow for the “net exercise” of stock options by all plan participants. In a net exercise, any required payroll taxes, federal withholding taxes and exercise price of the shares due from the option holder can be paid for by having the option holder tender back to the Company a number of shares at fair value equal to the amounts due. These transactions are accounted for by the Company as a purchase and retirement of shares. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company’s common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of Tucows Inc. common shares at the date of grant. The fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was estimated using the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Volatility 44.1 % 56.1 % 69.4 % Risk-free interest rate 1.3 % 1.3 % 1.1 % Expected life (in years) 4.0 % 4.0 % 4.0 % Dividend yield - % - % - % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 7.40 $ 7.02 $ 4.52 Details of stock option transactions are as follows: Year ended Year ended Year ended December 31, 2015 December 31, 2014 December 31, 2013 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of year 976,062 $ 5.41 1,407,639 $ 3.80 2,148,170 $ 2.56 Granted 67,500 21.26 102,475 15.78 180,375 8.36 Exercised (517,998 ) 3.53 (502,061 ) 2.95 (890,034 ) 1.80 Forfeited (10,323 ) 13.30 (28,366 ) 6.60 (29,684 ) 4.88 Expired (1,875 ) 2.40 (3,625 ) 3.36 (1,188 ) 1.44 Outstanding, end of year 513,366 9.24 976,062 5.41 1,407,639 3.80 Options exercisable, end of year 321,155 $ 6.49 725,392 $ 4.03 1,045,475 $ 3.14 As of December 31, 2015, the exercise prices, weighted average remaining contractual life of outstanding options and intrinsic values were as follows: Options outstanding Options exercisable Exercise price Number outstanding Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Number exercisable Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value $ 2.80 - $ 2.92 118,490 $ 2.84 1.8 $ 2,163,787 118,490 $ 2.84 1.8 $ 2,163,787 $ 3.00 - $ 5.76 148,348 5.18 2.8 2,361,720 110,841 5.08 2.5 1,775,898 $ 8.56 - $10.16 92,253 9.05 4.2 1,111,453 43,374 8.92 3.9 528,510 $ 14.67 - $24.96 154,275 18.18 5.3 538,064 48,450 16.46 4.8 224,724 513,366 $ 9.24 3.6 $ 6,175,024 321,155 $ 6.49 2.8 $ 4,692,919 Total unrecognized compensation cost relating to unvested stock options at December 31, 2015, prior to the consideration of expected forfeitures, is approximately $0.9 million and is expected to be recognized over a weighted average period of 1.8 years. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $0.5 million, $0.9 million and $1.1 million, respectively. Cash received from the exercise of stock options during the years ended December 31, 2015, 2014 and 2013 was $0.8 million, $1.5 million and $1.5 million respectively. The Company recorded stock-based compensation amounting to $0.5 million, $0.5 million and $0.4 million for the years ended December 31, 2015, 2014 and 2013 respectively. Stock-based compensation has been included in operating expenses as follows: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Network expenses $ 28,915 $ 30,938 $ 31,664 Sales and marketing 188,035 143,514 129,302 Technical operations and development 111,239 85,904 78,800 General and administrative 197,836 282,382 191,137 $ 526,025 $ 542,738 $ 430,903 |
Note 13 - Foreign Exchange Gain
Note 13 - Foreign Exchange Gain | 12 Months Ended |
Dec. 31, 2015 | |
Foreign Currency [Abstract] | |
Foreign Currency Disclosure [Text Block] | 13. Foreign exchange gain: A foreign exchange loss amounting to $0.3 million has been recorded in general and administrative expenses during the year ended December 31, 2015 (“Fiscal 2015”). A foreign exchange loss amounting to $0.3 million has been recorded in general and administrative expenses during the year ended December 31, 2014 (“Fiscal 2014”). A foreign exchange gain amounting to $0.3 million has been recorded in general and administrative expenses during the year ended December 31, 2013 (“Fiscal 2013”). |
Note 14 - Other Income, Net
Note 14 - Other Income, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 14. Other income, net: In February 2015, we waived our rights under the proposed joint venture to operate the .online registry and instead entered into a Joint Marketing agreement with our venture partners under which our original capital contributions have been returned and a set of go-forward marketing arrangements have been created instead. Under the terms of the agreement, the Company has undertaken to provide certain marketing support for .online registry and has agreed to certain volume commitments during the term of the agreement. The Joint Marketing Agreement is for a term of three years and commenced in November 2015. The Company generated a gain of $1.5 million for waiving its rights and entering the Joint Marketing Agreement. The gain is being recognized over the term of three years. An amount of $0.1 million of this gain was recognized during the current year. |
Note 15 - Earnings Per Common S
Note 15 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 15. Earnings per common share: The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator for basic and diluted earnings per common share: Net income for the year $ 11,373,730 $ 6,374,096 $ 4,180,464 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,968,500 11,220,874 10,468,250 Effect of stock options 391,584 509,524 813,159 Diluted weighted average number of shares outstanding 11,360,084 11,730,398 11,281,409 Basic earnings per common share $ 1.04 $ 0.57 $ 0.40 Diluted earnings per common share $ 1.00 $ 0.54 $ 0.37 Options to purchase 75,050 common shares were outstanding during 2015 (2014: 95,762; 2013: 136,812) but were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares. The options which expire in years 2016 to 2021 were still outstanding at the end of 2015. |
Note 16 - Commitments and Conti
Note 16 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 16. Commitments and contingencies: (a) The Company has several non-cancelable lease and purchase obligations primarily for general office facilities, service contracts for mobile telephone services and equipment that expire over the next ten years. Future minimum payments under these agreements are as follows: Contractual Obligations for the year ending December 31, Contractual Lease Obligations Purchase Obligations Total Obligations 2016 $ 973,000 $ 9,279,000 $ 10,252,000 2017 989,000 12,713,000 13,702,000 2018 1,020,000 443,000 1,463,000 2019 1,003,000 — 1,003,000 2020 991,000 — 991,000 Thereafter 1,188,000 — 1,188,000 $ 6,164,000 $ 22,435,000 $ 28,599,000 Rental expense under operating lease agreements was $1.0 million, $0.9 million and $0.8 million for the years ended December 31, 2015 2014 and 2013, respectively. (b) On February 9, 2015 Ting Fiber, Inc.(“TING”) entered into a lease and network operation agreement with the City of Westminster, Maryland (the ”City”) relating to the deployment of a new fiber network throughout the Westminster area (“WFN”). Under the agreement, the City will finance, construct, and maintain the WFN which will be leased to TING for a period of ten years. The network will be constructed in phases, the scope and timing of which shall be determined by the City, in cooperation with TING. Under the terms of the agreement, TING may be required to advance funds to the City in the event of a quarterly shortfall between the City’s revenue from leasing the network to TING and the City’s debt service requirements relating to financing of the network. TING is responsible for shortfalls between $50,000 and $150,000 per quarter. As at December 31, 2015 financing for the construction of the WFN has not yet been arranged and an estimate cannot be made of the maximum potential amount of future payments under the agreement. (c) In the normal course of its operations, the Company becomes involved in various legal claims and lawsuits. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions outstanding or pending as of December 31, 2015 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Company’s financial position. |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. Subsequent events: On February 9, 2016, the Company announced that its Board of Directors has approved a stock buyback program to repurchase up to $40 million of its common stock in the open market. Purchases will be made exclusively through the facilities of the NASDAQ Capital Market. The stock buyback program commenced on February 10, 2016 and will terminate on or before February 9, 2017. All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury. |
Note 18 - Segment Reporting
Note 18 - Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 18. Segment Reporting: (a) We are organized and managed based on three operating segments which are differentiated primarily by their services, the markets they serve and the regulatory environments in which they operate and are described as follows: 1. Network Access - Mobile Services - This segment derives revenue from the sale of mobile phones and telephony services to individuals and small businesses through the Ting website, as well as other network access services, including high speed Internet access, Internet hosting and network consulting services. Revenues are generated in the United States. 2. Network Access - Other Services - This segment derives revenue from the provisioning of high speed Internet access, Internet hosting and consulting services. 3. Domain Services – This segment includes wholesale and retail domain name registration services, value added services and portfolio services. The Company primarily earns revenues from the registration fees charged to resellers in connection with new, renewed and transferred domain name registrations; the sale of retail Internet domain name registration and email services to individuals and small businesses; and by making its portfolio of domain names available for sale or lease. Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. The Chief Executive Officer is the chief operating decision maker and regularly reviews the operations and performance by segment. The chief operating decision maker reviews gross profit as a key measure of performance for each segment and to make decisions about the allocation of resources. Sales and marketing expenses, technical operations and development expenses, general and administrative expenses, depreciation of property and equipment, amortization of intangibles assets , impairment of indefinite life intangible assets, loss on currency forward contracts, other income (expense), and provision for income taxes, are organized along functional lines and are not included in the measurement of segment profitability. Total assets and total liabilities are centrally managed and are not reviewed at the segment level by the chief operating decision maker. The Company follows the same accounting policies for the segments as those described in note 2 to these consolidated financial statements. Information by reportable segments, which is regularly reported to the chief operating decision maker is as follows: Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2015 Mobile Services Other Services Net Revenues $ 58,889,922 3,288,711 110,760,866 $ 172,939,499 Cost of revenues Cost of revenues 32,615,416 1,627,438 78,847,116 113,089,970 Network expenses 495 605,556 4,858,726 5,464,777 Depreciation of property and equipment - 447,646 697,343 1,144,989 Amortization of intangible assets - 38,520 - 38,520 Total cost of revenues 32,615,911 2,719,160 84,403,185 119,738,256 Gross Profit 26,274,011 569,551 26,357,681 53,201,243 Expenses: Sales and marketing 18,537,810 Technical operations and development 4,502,845 General and administrative 10,661,949 Depreciation of property and equipment 259,307 Amortization of intangible assets 224,206 Impairment of indefinite life intangible assets 206,116 Loss on currency forward contracts 792,900 Income from operations 18,016,110 Other expensees, net (73,153 ) Income before provision for income taxes $ 17,942,957 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2014 Mobile Services Other Services Net Revenues $ 35,887,005 - 111,780,102 $ 147,667,107 Cost of revenues Cost of revenues 21,870,780 - 79,990,222 101,861,002 Network expenses - - 4,554,635 4,554,635 Depreciation of property and equipment - - 699,670 699,670 Amortization of intangible assets - - - - Total cost of revenues 21,870,780 - 85,244,527 107,115,307 Gross Profit 14,016,225 - 26,535,575 40,551,800 Expenses: Sales and marketing 15,394,065 Technical operations and development 4,305,715 General and administrative 9,459,008 Depreciation of property and equipment 226,432 Amortization of intangible assets 596,620 Impairment of indefinite life intangible assets 577,145 Loss on currency forward contracts 357,760 Income from operations 9,635,055 Other expensees, net (206,730 ) Income before provision for income taxes $ 9,428,325 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2013 Mobile Services Other Services Net Revenues $ 16,530,237 - 113,404,667 $ 129,934,904 Cost of revenues Cost of revenues 12,621,093 - 80,339,228 92,960,321 Network expenses - - 4,835,939 4,835,939 Depreciation of property and equipment - - 627,973 627,973 Amortization of intangible assets - - 83,790 83,790 Total cost of revenues 12,621,093 - 85,886,930 98,508,023 Gross Profit 3,909,144 - 27,517,737 31,426,881 Expenses: Sales and marketing 12,141,036 Technical operations and development 4,158,603 General and administrative 7,523,906 Depreciation of property and equipment 215,447 Amortization of intangible assets 876,120 Impairment of indefinite life intangible assets - Loss on currency forward contracts 357,109 Income from operations 6,154,660 Other expensees, net (354,857 ) Income before provision for income taxes $ 5,799,803 (1) Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. (b) The following is a summary of the Company’s revenue earned from each significant revenue stream: Year ended December 31, 2015 2014 2013 Network Access Services: Mobile Services 58,889,922 35,887,005 16,530,237 Other Services 3,288,711 - - Total Network Access Services 62,178,633 35,887,005 16,530,237 Domain Services: Wholesale Domain Services $ 84,982,007 $ 86,640,949 $ 87,294,173 Value Added Services 9,297,943 9,654,734 10,271,219 Total Wholesale 94,279,950 96,295,683 97,565,392 Retail 12,341,013 10,417,746 8,360,035 Portfolio 4,139,903 5,066,673 7,479,240 Total Domain Services 110,760,866 111,780,102 113,404,667 $ 172,939,499 $ 147,667,107 $ 129,934,904 During the years ended December 31, 2015, 2014 and 2013, no customer accounted for more than 10% of total revenue. As at December 31, 2015, 2014 and 2013, no customers accounted for more than 10% of accounts receivable. (c) The following is a summary of the Company’s cost of revenues from each significant revenue stream: Year ended December 31, 2015 2014 2013 Network Access Services: Mobile Services 32,615,415 21,870,780 12,621,093 Other Services 1,627,439 - - Total Network Access Services 34,242,854 21,870,780 12,621,093 Domain Services: Wholesale Domain Services $ 70,763,964 $ 72,353,061 $ 73,468,824 Value Added Services 1,892,867 2,211,085 2,115,167 Total Wholesale 72,656,831 74,564,146 75,583,991 Retail 5,473,102 4,539,439 3,521,023 Portfolio 717,183 886,637 1,234,214 Total Domain Services 78,847,116 79,990,222 80,339,228 Network Expenses: Network, other costs 5,464,777 4,554,635 4,835,939 Network, depreciation and amortization costs 1,183,509 699,670 711,763 6,648,286 5,254,305 5,547,702 $ 119,738,256 $ 107,115,307 $ 98,508,023 (d) The following is a summary of the Company’s property and equipment by geographic region: Year ended December 31, 2015 2014 Canada $ 1,225,236 $ 1,131,883 United States 5,847,666 379,891 Germany 53,774 98,013 $ 7,126,676 $ 1,609,787 (e) The following is a summary of the Company’s amortizable intangible assets by geographic region: Year ended December 31, 2015 2014 United States $ 702,594 $ — Germany 530,410 735,730 $ 1,233,004 $ 735,730 (f) The following is a summary of the Company’s deferred tax asset, net of valuation allowance, by geographic region: Year ended December 31, 2015 2014 Canada $ 7,621,092 $ 7,378,619 $ 7,621,092 $ 7,378,619 (g) Valuation and qualifying accounts: Balance at beginning year Charged to (recovered) costs and expenses Write-offs during year Balance at end of year Allowance for doubtful accounts, excluding provision for credit notes 2015 $ 125,766 $ (3,671 ) $ — $ 122,095 2014 $ 91,226 $ 34,540 $ — $ 125,766 2013 $ 73,970 $ 17,256 $ — $ 91,226 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, management evaluates its estimates, including those related to amounts recognized for or carrying values of revenues, bad debts, goodwill and intangible assets which require estimates of future cash flows and discount rates, income taxes, contingencies and litigation, and estimates of credit spreads for determination of the fair value of derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time they are made. Under different assumptions or conditions, the actual results will differ, potentially materially, from those previously estimated. Many of the conditions impacting these assumptions and estimates are outside of the Company’s control. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (c) Cash and cash equivalents All highly liquid investments, with an original term to maturity of three months or less are classified as cash and cash equivalents. Cash and cash equivalents are stated at cost which approximates market value. |
Inventory, Policy [Policy Text Block] | (d) Inventory Inventory primarily consists of mobile devices and other accessories, and is stated at the lower of cost or net realizable value. Cost is determined based on actual cost of the mobile device or accessory shipped. The net realizable value of inventory is analyzed on a regular basis. This analysis includes assessing obsolescence, sales forecasts, product life cycle, marketplace and other considerations. If assessments regarding the above factors adversely change, we may be required to write down the value of inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | (e) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis so as to depreciate the cost of depreciable assets over their estimated useful lives at the following rates: Asset Rate Computer equipment 30 % Computer software 100 % Furniture and equipment 20 % Vehicles and tools 20 % Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease The Company reviews the carrying values of its property and equipment for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the estimated undiscounted future cash flows expected to result from the use of the group of assets and its eventual disposition is less than its carrying amount, it is considered to be impaired. The amount of the impairment loss recognized is measured as the amount by which the carrying value of the asset exceeds the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the assets. Additions to the fiber network are recorded at cost, including all material, labor, vehicle and installation and construction costs and certain indirect costs associated with the construction of cable transmission and distribution facilities. While the Company’s capitalization is based on specific activities, once capitalized, costs are tracked by fixed asset category at the fiber network level and not on a specific asset basis. For assets that are retired, the estimated historical cost and related accumulated depreciation is removed. |
Derivatives, Policy [Policy Text Block] | (f) Derivative Financial Instruments The Company uses derivative financial instruments to manage foreign currency exchange risk. The Company accounts for these instruments in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging” ("Topic 815"), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date. Topic 815 also requires that changes in our derivative financial instruments’ fair values be recognized in earnings, unless specific hedge accounting and documentation criteria are met (i.e. the instruments are accounted for as hedges). The Company recorded the effective portions of the gain or loss on derivative financial instruments that were designated as cash flow hedges in accumulated other comprehensive income in our accompanying Consolidated Balance Sheets. Any ineffective or excluded portion of a designated cash flow hedge, if applicable, is recognized in net income. For certain contracts, the Company has not complied with the documentation standards required for its forward foreign exchange contracts to be accounted for as hedges and has, therefore, accounted for such forward foreign exchange contracts at their fair values with the changes in fair value recorded in net income. The fair value of the forward exchange contracts are determined using an estimated credit adjusted mark-to-market valuation which takes into consideration the Company's and the counterparty's credit risk. The valuation technique used to measure the fair values of the derivative instruments is a discounted cash flow technique, with all significant inputs derived from or corroborated by observable market data, as no quoted market prices exist for the derivative instruments. Our discounted cash flow techniques use observable market inputs, such as foreign currency spot and forward rates. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | (g) Goodwill and Other Intangible assets Goodwill Goodwill represents the excess of purchase price over the fair values assigned to the net assets acquired in business combinations. The Company does not amortize goodwill. Impairment testing for goodwill is performed annually in the fourth quarter of each year or more frequently if impairment indicators are present. Impairment testing is performed at the operating segment level. The Company has determined that it has three operating segments, Domain Services and Network Access - Mobile Services and Network Access – Other Services. The Company performs a qualitative assessment to determine whether there are events or circumstances which would lead to a determination that it is more likely than not that goodwill has been impaired. If, after this qualitative assessment, the Company determines that it is not more likely than not that goodwill has been impaired, then no further quantitative testing is necessary. In performance of the qualitative test, an evaluation is made of the impact of various factors to the expected future cash flows attributable to its operating segments and to the assumed discount rate which would be used to present value those cash flows. Consideration is given to factors such as, macro-economic and industry and market conditions including the capital markets and the competitive environment amongst others. In the event that the qualitative tests indicate that there may be impairment, quantitative impairment testing is required. In performance of the quantitative test, the Company uses a discounted cash flow or income approach in which future expected cash flows at the operating segment level are converted to present value using factors that consider the timing and risk of the future cash flows. The estimate of cash flows used is prepared on an unleveraged debt-free basis. The discount rate reflects a market-derived weighted average cost of capital. The Company believes that this approach is appropriate because it provides a fair value estimate based upon the Company’s expected long-term operating and cash flow performance for its operating segment. The projections are based upon the Company’s best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital. If assumptions and estimates used to allocate the purchase price or used to assess impairment prove to be inaccurate, future asset impairment charges could be required. Intangibles Assets not subject to amortization Intangible assets not subject to amortization consist of surname domain names and direct navigation domain names. While the domain names are renewed annually, through payment of a renewal fee to the applicable registry, the Company has the exclusive right to renew these names at its option. Renewals occur routinely and at a nominal cost. Moreover, the Company has determined that there are currently no legal, regulatory, contractual, economic or other factors that limit the useful life of these domain names on an aggregate basis and accordingly treat the portfolio of domain names as indefinite life intangible assets. The Company reevaluates the useful life determination for domain names in the portfolio each year to determine whether events and circumstances continue to support an indefinite useful life. The Company reviews individual domain names in the portfolio for potential impairment throughout the fiscal year in determining whether a particular name should be renewed. Impairment is recognized for names that are not renewed. The Company performs a qualitative assessment of the portfolio of domain names on an aggregate basis in the fourth quarter of each year, to determine whether it is more likely than not that the fair market value of the portfolio of domain names was less than the carrying amount. As part of the assessment, certain qualitative factors are considered, including macro-economic conditions, industry and market conditions, levels of advertising revenue generated by the names in the portfolio, non-renewal of names, as well as other factors. If there are indications of impairment following the qualitative impairment testing, further quantitative impairment testing would be necessary. The fair value of the intangibles in the operating segment is determined using an income approach consistent with that utilized for goodwill impairment testing outlined above. Where the fair value of the aggregated portfolio of domain names is less than the aggregated carrying amount of the portfolio, impairment is recognized. Intangible Assets subject to amortization Intangible assets subject to amortization, consist of technology, brand and customer relationships and are amortized on a straight line basis over their estimated useful lives as follows: (in years) Technology 2 - 7 Brand 7 Customer relationships 4 - 7 Network rights 15 The Company continually evaluates whether events or circumstances have occurred that indicate the remaining estimated useful lives of its intangible assets subject to amortization may warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. |
Revenue Recognition, Policy [Policy Text Block] | (h) Revenue recognition The Company’s revenues are derived from domain name registration fees on both a wholesale and retail basis, the sale of domain names, the provisioning of other Internet services and advertising and other revenue. Amounts received in advance of meeting the revenue recognition criteria described below are recorded as deferred revenue. The Company earns registration fees in connection with each new, renewed and transferred-in registration and from providing provisioning of other Internet services to resellers and registrars on a monthly basis. Service has been provided in connection with registration fees once the Company has confirmed that the requested domain name has been appropriately recorded in the registry under contractual performance standards. Domain names are generally purchased for terms of one to ten years. Registration fees charged for domain name registration and provisioning services are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned for annual periods or longer, are recognized on a straight-line basis over the life of the contracted term. Other Internet services that are provisioned on a monthly basis are recognized as services are provided. For arrangements with multiple deliverables, the Company allocates revenue to each deliverable if the delivered item(s) has value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. The fair value of the selling price for a deliverable is determined using a hierarchy of (1) Company specific objective and reliable evidence, then (2) third-party evidence, then (3) best estimate of selling price. The Company allocates any arrangement fee to each of the elements based on their relative selling prices. Revenue generated from the sale of domain names, earned from transferring the rights to domain names under the Company’s control, are recognized once the rights have been transferred and payment has been received in full. The Company derives revenues from the provisioning of mobile phone and fixed Internet access services primarily through its Ting website. These revenues are recognized once services have been provided. Revenues for wireless services are billed based on the actual amount of monthly services utilized by each customer during their billing cycle on a postpaid basis. The Company’s billing cycle for each customer is computed based on the customer’s activation date. As a result, the Company estimates the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting period. In addition, revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are recorded as a reduction of revenue. The Company also generates advertising and other revenue through its online libraries of shareware, freeware and online services presented on its website. Advertising revenue includes revenue derived from cost-per action advertising links we display on third party websites who provide syndicated pay-per-click advertising on OpenSRS Domain Expiry Stream domains and the Company’s Portfolio Domains. In addition, the Company uses third party partners to derive pay-per-click advertising on the Tucows.com website. Advertising revenue is recognized on a monthly basis based on the number of cost-per-action services that were provided in the month. Impression based advertising revenue and other revenues are recognized ratably over the period in which it is presented. To the extent that minimum guaranteed impressions are not met, the Company defers recognition of the corresponding revenues until the guaranteed impressions are achieved. In those cases where payment is not received at the time of sale, additional conditions for recognition of revenue are that the collection of the related accounts receivable is reasonably assured and the Company has no further performance obligations. The Company records costs that reflect expected refunds, rebates and credit card charge-backs as a reduction of revenues at the time of the sale based on historical experiences and current expectations. The Company establishes provisions for possible uncollectible accounts receivable and other contingent liabilities which may arise in the normal course of business. Historically, credit losses have been within the Company’s expectations and the provisions the Company has established have been appropriate. However, the Company has, on occasion, experienced issues which have led to accounts receivable not being fully collected. Should these issues occur more frequently, additional provisions may be required. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | (i) Deferred revenue Deferred revenue primarily relates to the unearned portion of revenues received in advance related to the unexpired term of registration fees from domain name registrations and other Internet services, on both a wholesale and retail basis, net of external commissions. |
Accreditation Fees Payable [Policy Text Block] | (j) Accreditation fees payable In accordance with ICANN rules, the Company has elected to pay ICANN fees incurred on the registration of Generic Top-Level Domains on an annual basis. Accordingly, accreditation fees that relate to registrations completed prior to ICANN rendering a bill are accrued and reflected as accreditation fees payable. |
Prepaid Domain Name Registry Fees [Policy Text Block] | (k) Prepaid domain name registry fees Prepaid domain name registry and other Internet services fees represent amounts paid to registries, and country code domain name operators for updating and maintaining the registries, as well as to suppliers of other Internet services. Domain name registry and other Internet services fees are recognized on a straight-line basis over the life of the contracted registration term. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (l) Translation of foreign currency transactions The Company’s functional currency is the United States dollar. Monetary assets and liabilities of the Company and of its wholly owned subsidiaries that are denominated in foreign currencies are translated into United States dollars at the exchange rates prevailing at the balance sheet dates. Non-monetary assets and liabilities are translated at the historical exchange rates. Transactions included in operations are translated at the average rate for the year. |
Income Tax, Policy [Policy Text Block] | (m) Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the year that includes the enactment date. A valuation allowance is recorded if it is not “more likely than not” that some portion of or all of a deferred tax asset will be realized. The Company recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority and includes consideration of interest and penalties. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The liability for unrecognized tax benefits is classified as non-current unless the liability is expected to be settled in cash within 12 months of the reporting date. The Company is entitled to earn investment tax credits (“ITCs”), which are credits related to specific qualifying expenditures as prescribed by Canadian Income Tax legislation. These ITCs relate primarily to research and development expenses. The ITCs are recognized as a reduction in income tax expense once the Company has reasonable assurance that the amounts will be realized. The Company has not made any ITC claims for the years ended December 31, 2015 and 2014. |
Compensation Related Costs, Policy [Policy Text Block] | (n) Stock-based compensation Stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest, reduced for estimated forfeitures. |
Earnings Per Share, Policy [Policy Text Block] | (o) Earnings per common share Basic earnings per common share has been calculated on the basis of net income for the year divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common share equivalents or the proceeds of the exercise of options. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (p) Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, accounts receivable and forward foreign exchange contracts. Cash equivalents consist of deposits with major commercial banks, the maturities of which are three months or less from the date of purchase. With respect to accounts receivable, the Company performs periodic credit evaluations of the financial condition of its customers and typically does not require collateral from them. The counterparty to any forward foreign exchange contracts is a major commercial bank which management believes does not represent a significant credit risk. Management assesses the need for allowances for potential credit losses by considering the credit risk of specific customers, historical trends and other information. |
Fair Value Measurement, Policy [Policy Text Block] | (q) Fair value measurement Fair value of financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs used in the methodologies of measuring fair value for assets and liabilities, is as follows: Level 1—Quoted prices in active markets for identical assets or liabilities Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—No observable pricing inputs in the market Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment, and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The fair value of cash and cash equivalents, accounts receivable, accounts payable, accreditation fees payable, customer deposits and accrued liabilities (level 2 measurements) approximate their carrying values due to the relatively short periods to maturity of the instruments. The fair value of the derivative financial instruments are determined using an estimated credit-adjusted mark-to-market valuation (a level 2 measurement) which takes into consideration the Company and the counterparty credit risk. |
Segment Reporting, Policy [Policy Text Block] | (r) Segment reporting The Company operates in three operating segments, Domain Services, Network Access – Mobile Services and Network Access – Other Services. The Company’s Domain Services revenues are attributed to the country in which the contract originates, primarily Canada. Revenues from domain names issued from the Toronto, Canada location are attributed to Canada because it is impracticable to determine the country of the customer. The Company’s Network Access – Mobile Services revenues, which consist primarily of mobile telephony services, are generated through its business operations in the United States. The Company’s Network Access - Other Services consists of the provisioning of high speed Internet access, Internet hosting and consulting services. The Company’s assets are located in Canada, the United States, Germany and the Netherlands. |
New Accounting Pronouncements, Policy [Policy Text Block] | (s) Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted On January 1, 2015, the Company adopted the Accounting Standards Update (“2014-08”), Presentation of Financial Statements and Property, Plant and Equipment: Discontinued Operations and Disclosures of Disposals of components of an Entity. The adoption of ASU 2014-08 did not have a material impact on the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, Financial Instruments – Overall (Subtopic 825-10) In September 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) ("ASU 2015-16"), which relates to the simplification of the accounting for measurement-period adjustments in business combinations. This standard update eliminates the requirement to account for measurement-period adjustments retrospectively and requires that an acquirer record the effects on earnings of any changes resulting from the change in provisional amounts, calculated as if the accounting had been completed at the acquisition date in the reporting period in which the adjustments are determined. We will adopt this update during the first quarter of 2016. The adoption of this update is not expected to have a significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"), which provides guidance in determining whether fees for purchasing cloud computing services (or hosted software solutions) are considered internal-use software or should be considered a service contract. The cloud computing agreement that includes a software license should be accounted for in the same manner as internal-use software if the customer has the contractual right to take possession of the software during the hosting period without significant penalty and it is feasible to either run the software on customer’s hardware or contract with another vendor to host the software. Arrangements that don’t meet the requirements for internal-use software should be accounted for as a service contract. ASU 2015-05 will be effective for interim and annual periods beginning after December 15, 2015 (January 1, 2016 for the Company) . We will adopt this update in the first quarter of 2016. The adoption of this update is not expected to have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest Imputation of Interest Subtopic 835-30 In August 2014, the FASB issued ASU No 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Note 2 - Significant Accounti28
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation Rates [Table Text Block] | Asset Rate Computer equipment 30 % Computer software 100 % Furniture and equipment 20 % Vehicles and tools 20 % Fiber network (years) 15 Customer equipment and installations (years) 3 Leasehold improvements Over term of lease |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition Purchase Consideration [Table Text Block] | Cash $ 3,135,140 Less refund from working capital adjustment (50,000 ) Repayment of debt 418,775 Redeemable non-controlling interest 3,000,000 $ 6,503,915 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Current assets (including cash of $21,423) $ 338,577 Current liabilities (529,702 ) Property and equipment, including: Fiber network 3,456,024 Computer equipment 200,000 Furniture and equipment 5,000 Vehicles 92,000 Leasehold improvements 50,000 Intangible assets, including: Network rights 692,000 Customer equipment and installations 68,000 Goodwill 2,132,016 Net assets acquired $ 6,503,915 |
Note 4 - Other Assets (Tables)
Note 4 - Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Other Assets [Table Text Block] | Year ended Year ended Amounts in escrow advanced to acquire a controlling ownership interest in Ting Virginia, LLC (see note 3) $ — $ 3,125,000 Amounts advanced to the joint venture which was terminated in February 2015 (see note 14) — 5,074,000 $ — $ 8,199,000 |
Note 5 - Property and Equipme31
Note 5 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 December 31, 2014 Computer equipment $ 6,865,906 $ 5,902,905 Computer software 1,171,806 1,170,866 Furniture and equipment 1,094,455 757,118 Vehicles and tools 275,424 — Fiber network 4,633,942 — Customer equipment and installations 242,370 — Leasehold improvements 55,719 — 14,339,622 7,830,889 Less: Accumulated depreciation 7,212,946 6,221,102 $ 7,126,676 $ 1,609,787 |
Schedule of Depreciation [Table Text Block] | Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Depreciation of property and equipment $ 1,404,296 $ 926,102 $ 843,420 |
Note 6 - Goodwill and Other I32
Note 6 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | December 31, 2015 December 31, 2014 Boardtown Corporation $ 2,044,847 $ 2,044,847 Hosted Messaging Assets of Critical Path 4,072,297 4,072,297 Innerwise Inc. 5,801,040 5,801,040 Mailbank.com Inc. 6,072,623 6,072,623 EPAG Domainservices GmbH 882,320 882,320 Ting Fiber, Inc. (note 3) 1,426,893 — Ting Virginia, LLC (note 3) 705,123 — Total $ 21,005,143 $ 18,873,127 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Surname domain names Direct navigation domain names Brand Customer relationships Network rights Total Amortization period indefinite life indefinite life 7 years 4 - 7 years 15 years Balances, December 31, 2013 $ 12,096,712 $ 1,974,166 $ 224,650 $ 1,107,700 $ - $ 15,403,228 Additions to/(disposals from) domain portfolio, net (6,490 ) (20,388 ) - - - (26,878 ) Impairment of indefinite life intangible assets (564,598 ) (12,547 ) - - - (577,145 ) Amortization expense - - (114,140 ) (482,480 ) - (596,620 ) Balance December 31, 2014 11,525,624 1,941,231 110,510 625,220 - 14,202,585 Additions to/(disposals from) domain portfolio, net (6,815 ) (17,251 ) - - - (24,066 ) Impairment of indefinite life intangible assets (179,454 ) (26,662 ) - - - (206,116 ) Amortization expense - - (30,840 ) (193,366 ) (38,520 ) (262,726 ) Acquisition of Ting Virginia, LLC (note 3) - - - 68,000 692,000 760,000 Balance December 31, 2015 $ 11,339,355 $ 1,897,318 $ 79,670 $ 499,854 $ 653,480 $ 14,469,677 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31, 2016 $ 274,116 2017 274,116 2018 169,676 2019 46,128 2020 46,128 Thereafter 422,840 Total $ 1,233,004 |
Note 7 - Fair Value Measureme33
Note 7 - Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 2015 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 2,027,086 $ — $ 2,027,086 Total Liabilities $ — $ 2,027,086 $ — $ 2,027,086 December 31, 2014 Fair Value Measurement Using Liabilities at Level 1 Level 2 Level 3 Fair Value Derivative instrument liability $ — $ 1,115,805 $ — $ 1,115,805 Total Liabilities $ — $ 1,115,805 $ — $ 1,115,805 |
Note 8 - Derivative Instrumen34
Note 8 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Derivatives Balance Sheet Location December 31, December 31, Foreign currency forward contracts designated as cash flow hedges Derivative instruments $ (1,721,683 ) $ (946,676 ) Foreign currency forward contracts not designated as cash flow hedges Derivative instruments $ (305,403 ) $ (169,129 ) Total foreign currency forward contracts Derivative instruments $ (2,027,086 ) $ (1,115,805 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) Other comprehensive income (loss) before reclassifications (3,171,740 ) 1,140,275 (2,031,465 ) Amount reclassified from accumulated other comprehensive income 2,396,733 (852,279 ) 1,544,454 Other comprehensive income (loss) for the year ended December 31, 2015 (775,007 ) 287,996 (487,011 ) Ending AOCI balance – December 31, 2015 $ (1,721,683 ) $ 612,231 $ (1,109,452 ) Gains and losses on cash flow hedges Tax impact Total AOCI Opening AOCI balance – December 31, 2013 $ (372,593 ) $ 127,612 $ (244,981 ) Other comprehensive income (loss) before reclassifications (1,527,171 ) 523,056 (1,004,115 ) Amount reclassified from accumulated other comprehensive income 953,088 (326,433 ) 626,655 Other comprehensive income (loss) for the year ended December 31, 2014 (574,083 ) 196,623 (377,460 ) Ending AOCI balance – December 31, 2014 $ (946,676 ) $ 324,235 $ (622,441 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives in Cash Flow Hedging Relationship Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, net of tax, (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness), net of tax Operating expenses $ (1,205,554 ) Foreign currency forward contracts – year ended December 31, 2015 $ (487,011 ) Cost of revenues (338,900 ) Operating expenses $ (189,526 ) Operating expenses (463,160 ) Foreign currency forward contracts – year ended December 31, 2014 (377,460 ) Cost of revenues (163,495 ) Operating expenses (13,535 ) |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Income for the year before provision for income taxes $ 17,942,957 $ 9,428,325 $ 5,799,803 Computed expected tax expense $ 6,100,605 $ 3,205,631 $ 1,971,933 Increase (reduction) in income tax expense resulting from: State income taxes 265,489 64,056 14,500 Permanent differences, including foreign exchange 278,959 192,260 13,700 Investment tax credits recovered — — (115,455 ) Other, including alternative minimum tax and adjustments to opening deferred tax assets (75,826 ) (407,718 ) (265,339 ) Provision for income taxes $ 6,569,227 $ 3,054,229 $ 1,619,339 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 December 31, 2014 Deferred tax assets: Deferred revenue $ 5,454,284 $ 5,294,767 Foreign tax credit 1,529,075 3,200,961 Amortization (883,466 ) (414,345 ) Accruals, including foreign exchange and other 1,521,199 (702,764 ) Deferred tax assets $ 7,621,092 $ 7,378,619 Deferred income tax asset, current portion $ 3,243,718 $ 2,498,196 Deferred income tax asset, long-term portion 4,377,374 4,880,423 $ 7,621,092 $ 7,378,619 Deferred tax liabilities: Limited life intangible assets $ (169,731 ) $ (208,620 ) Indefinite life intangible assets (4,706,960 ) (4,578,731 ) Total deferred tax liability, long-term portion $ (4,876,691 ) $ (4,787,351 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Total Gross Unrecognized Tax Benefits December 31, 2015 December 31, 2014 Balance, beginning of year $ 117,000 $ 117,000 Change in uncertain tax benefits — — Balance, end of year $ 117,000 $ 117,000 |
Note 11 - Common Shares (Tables
Note 11 - Common Shares (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchases [Table Text Block] | Year Ended December 31, 2015 2014 2013 Common stock repurchased on the open market or through tender offer Number of shares 1,062,456 79,392 1,064,299 Aggregate market value of shares (in thousands) $ 23,616 $ 1,182 $ 6,538 Average price per share $ 22.23 $ 14.89 $ 6.14 Common stock received in connection with share-based compensation Number of shares 99,675 — — Aggregate market value of shares (in thousands) $ 2,335 $ — $ — Average price per share $ 23.42 $ — $ — |
Note 12 - Stock Option Plans (T
Note 12 - Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 2015 2014 2013 Volatility 44.1 % 56.1 % 69.4 % Risk-free interest rate 1.3 % 1.3 % 1.1 % Expected life (in years) 4.0 % 4.0 % 4.0 % Dividend yield - % - % - % The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant $ 7.40 $ 7.02 $ 4.52 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Year ended Year ended Year ended December 31, 2015 December 31, 2014 December 31, 2013 Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Number of shares Weighted average exercise price per share Outstanding, beginning of year 976,062 $ 5.41 1,407,639 $ 3.80 2,148,170 $ 2.56 Granted 67,500 21.26 102,475 15.78 180,375 8.36 Exercised (517,998 ) 3.53 (502,061 ) 2.95 (890,034 ) 1.80 Forfeited (10,323 ) 13.30 (28,366 ) 6.60 (29,684 ) 4.88 Expired (1,875 ) 2.40 (3,625 ) 3.36 (1,188 ) 1.44 Outstanding, end of year 513,366 9.24 976,062 5.41 1,407,639 3.80 Options exercisable, end of year 321,155 $ 6.49 725,392 $ 4.03 1,045,475 $ 3.14 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options outstanding Options exercisable Exercise price Number outstanding Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value Number exercisable Weighted average exercise price per share Weighted average remaining contractual life (years) Aggregate intrinsic value $ 2.80 - $ 2.92 118,490 $ 2.84 1.8 $ 2,163,787 118,490 $ 2.84 1.8 $ 2,163,787 $ 3.00 - $ 5.76 148,348 5.18 2.8 2,361,720 110,841 5.08 2.5 1,775,898 $ 8.56 - $10.16 92,253 9.05 4.2 1,111,453 43,374 8.92 3.9 528,510 $ 14.67 - $24.96 154,275 18.18 5.3 538,064 48,450 16.46 4.8 224,724 513,366 $ 9.24 3.6 $ 6,175,024 321,155 $ 6.49 2.8 $ 4,692,919 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Network expenses $ 28,915 $ 30,938 $ 31,664 Sales and marketing 188,035 143,514 129,302 Technical operations and development 111,239 85,904 78,800 General and administrative 197,836 282,382 191,137 $ 526,025 $ 542,738 $ 430,903 |
Note 15 - Earnings Per Common38
Note 15 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 Numerator for basic and diluted earnings per common share: Net income for the year $ 11,373,730 $ 6,374,096 $ 4,180,464 Denominator for basic and diluted earnings per common share: Basic weighted average number of common shares outstanding 10,968,500 11,220,874 10,468,250 Effect of stock options 391,584 509,524 813,159 Diluted weighted average number of shares outstanding 11,360,084 11,730,398 11,281,409 Basic earnings per common share $ 1.04 $ 0.57 $ 0.40 Diluted earnings per common share $ 1.00 $ 0.54 $ 0.37 |
Note 16 - Commitments and Con39
Note 16 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Contractual Obligations for the year ending December 31, Contractual Lease Obligations Purchase Obligations Total Obligations 2016 $ 973,000 $ 9,279,000 $ 10,252,000 2017 989,000 12,713,000 13,702,000 2018 1,020,000 443,000 1,463,000 2019 1,003,000 — 1,003,000 2020 991,000 — 991,000 Thereafter 1,188,000 — 1,188,000 $ 6,164,000 $ 22,435,000 $ 28,599,000 |
Note 18 - Segment Reporting (Ta
Note 18 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Condensed Income Statement [Table Text Block] | Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2015 Mobile Services Other Services Net Revenues $ 58,889,922 3,288,711 110,760,866 $ 172,939,499 Cost of revenues Cost of revenues 32,615,416 1,627,438 78,847,116 113,089,970 Network expenses 495 605,556 4,858,726 5,464,777 Depreciation of property and equipment - 447,646 697,343 1,144,989 Amortization of intangible assets - 38,520 - 38,520 Total cost of revenues 32,615,911 2,719,160 84,403,185 119,738,256 Gross Profit 26,274,011 569,551 26,357,681 53,201,243 Expenses: Sales and marketing 18,537,810 Technical operations and development 4,502,845 General and administrative 10,661,949 Depreciation of property and equipment 259,307 Amortization of intangible assets 224,206 Impairment of indefinite life intangible assets 206,116 Loss on currency forward contracts 792,900 Income from operations 18,016,110 Other expensees, net (73,153 ) Income before provision for income taxes $ 17,942,957 Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2014 Mobile Services Other Services Net Revenues $ 35,887,005 - 111,780,102 $ 147,667,107 Cost of revenues Cost of revenues 21,870,780 - 79,990,222 101,861,002 Network expenses - - 4,554,635 4,554,635 Depreciation of property and equipment - - 699,670 699,670 Amortization of intangible assets - - - - Total cost of revenues 21,870,780 - 85,244,527 107,115,307 Gross Profit 14,016,225 - 26,535,575 40,551,800 Expenses: Sales and marketing 15,394,065 Technical operations and development 4,305,715 General and administrative 9,459,008 Depreciation of property and equipment 226,432 Amortization of intangible assets 596,620 Impairment of indefinite life intangible assets 577,145 Loss on currency forward contracts 357,760 Income from operations 9,635,055 Other expensees, net (206,730 ) Income before provision for income taxes $ 9,428,325 Network Access (1) Domain Name Services Consolidated Totals Year ended December 31, 2013 Mobile Services Other Services Net Revenues $ 16,530,237 - 113,404,667 $ 129,934,904 Cost of revenues Cost of revenues 12,621,093 - 80,339,228 92,960,321 Network expenses - - 4,835,939 4,835,939 Depreciation of property and equipment - - 627,973 627,973 Amortization of intangible assets - - 83,790 83,790 Total cost of revenues 12,621,093 - 85,886,930 98,508,023 Gross Profit 3,909,144 - 27,517,737 31,426,881 Expenses: Sales and marketing 12,141,036 Technical operations and development 4,158,603 General and administrative 7,523,906 Depreciation of property and equipment 215,447 Amortization of intangible assets 876,120 Impairment of indefinite life intangible assets - Loss on currency forward contracts 357,109 Income from operations 6,154,660 Other expensees, net (354,857 ) Income before provision for income taxes $ 5,799,803 |
Schedule Of Operating Income By Revenue Stream [Table Text Block] | Year ended December 31, 2015 2014 2013 Network Access Services: Mobile Services 58,889,922 35,887,005 16,530,237 Other Services 3,288,711 - - Total Network Access Services 62,178,633 35,887,005 16,530,237 Domain Services: Wholesale Domain Services $ 84,982,007 $ 86,640,949 $ 87,294,173 Value Added Services 9,297,943 9,654,734 10,271,219 Total Wholesale 94,279,950 96,295,683 97,565,392 Retail 12,341,013 10,417,746 8,360,035 Portfolio 4,139,903 5,066,673 7,479,240 Total Domain Services 110,760,866 111,780,102 113,404,667 $ 172,939,499 $ 147,667,107 $ 129,934,904 |
Schedule of Cost of Revenues by Revenue Stream [Table Text Block] | Year ended December 31, 2015 2014 2013 Network Access Services: Mobile Services 32,615,415 21,870,780 12,621,093 Other Services 1,627,439 - - Total Network Access Services 34,242,854 21,870,780 12,621,093 Domain Services: Wholesale Domain Services $ 70,763,964 $ 72,353,061 $ 73,468,824 Value Added Services 1,892,867 2,211,085 2,115,167 Total Wholesale 72,656,831 74,564,146 75,583,991 Retail 5,473,102 4,539,439 3,521,023 Portfolio 717,183 886,637 1,234,214 Total Domain Services 78,847,116 79,990,222 80,339,228 Network Expenses: Network, other costs 5,464,777 4,554,635 4,835,939 Network, depreciation and amortization costs 1,183,509 699,670 711,763 6,648,286 5,254,305 5,547,702 $ 119,738,256 $ 107,115,307 $ 98,508,023 |
Schedule Of Property, Plant, and Equipment By Geographic Region [TableText Block] | Year ended December 31, 2015 2014 Canada $ 1,225,236 $ 1,131,883 United States 5,847,666 379,891 Germany 53,774 98,013 $ 7,126,676 $ 1,609,787 |
Schedule of Acquired Intangible Assets by Major Class [Table Text Block] | Year ended December 31, 2015 2014 United States $ 702,594 $ — Germany 530,410 735,730 $ 1,233,004 $ 735,730 |
Schedule of Deferred Tax asset, Net by Geographic Region [Table Text Block] | Year ended December 31, 2015 2014 Canada $ 7,621,092 $ 7,378,619 $ 7,621,092 $ 7,378,619 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Balance at beginning year Charged to (recovered) costs and expenses Write-offs during year Balance at end of year Allowance for doubtful accounts, excluding provision for credit notes 2015 $ 125,766 $ (3,671 ) $ — $ 122,095 2014 $ 91,226 $ 34,540 $ — $ 125,766 2013 $ 73,970 $ 17,256 $ — $ 91,226 |
Note 2 - Significant Accounti41
Note 2 - Significant Accounting Policies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Number of Operating Segments | 3 |
Number of Reportable Segments | 3 |
General and Administrative Expense [Member] | The Year Ended December 31, 2014 [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Prior Period Reclassification Adjustment (in Dollars) | $ 1 |
General and Administrative Expense [Member] | The Year Ended December 31, 2013 [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Prior Period Reclassification Adjustment (in Dollars) | $ 0.3 |
Technology [Memer] | Minimum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Technology [Memer] | Maximum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Brand [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Customer Relationships [Member] | Minimum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 4 years |
Customer Relationships [Member] | Maximum [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Network Rights [Member] | |
Note 2 - Significant Accounting Policies (Details) [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Note 2 - Significant Accounti42
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates | 12 Months Ended |
Dec. 31, 2015 | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Leasehold improvements | Over term of lease |
Computer Equipment [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 30.00% |
Computer Software [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 100.00% |
Furniture and Fixtures [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 20.00% |
Vehicles and Tools [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation rate | 20.00% |
Fiber Network [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation term | 15 years |
Customer Equipment and Installations [Member] | |
Note 2 - Significant Accounting Policies (Details) - Summary of Property, Plant and Equipment Depreciation Rates [Line Items] | |
Depreciation term | 3 years |
Note 3 - Acquisitions (Details)
Note 3 - Acquisitions (Details) | Feb. 27, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 17, 2015USD ($) |
Note 3 - Acquisitions (Details) [Line Items] | ||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 3,036,598 | |||
Ting Virginia, LLC [Member] | ||||
Note 3 - Acquisitions (Details) [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 70.00% | |||
Business Combination, Consideration Transferred | $ 3,500,000 | |||
Business Combination, Consideration Transferred, Advanced in Escrow | $ 3,125,000 | |||
Payments to Acquire Businesses, Gross | $ 3,135,140 | 357,492 | ||
Business Combination Customers Acquired Number | 3,000 | |||
Business Combination, Interest Subject to Put and Call Option Exercise | 30.00% | |||
Business Combination, Put Option Excercisable Term | 7 days | |||
Business Combination, Interest Subject to Put Option Exercise | 10.00% | |||
Business Combination, Consideration to be Transfered upon Exercise of Options per Percentage Point | $ 100,000 | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 3,036,598 | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 36,598 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $ 200,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 3,300,000 | |||
Ting Virginia, LLC [Member] | Exercisable on Second Anniversary of Business Combination [Member] | ||||
Note 3 - Acquisitions (Details) [Line Items] | ||||
Business Combination, Interest Subject to Call Option Exercise | 20.00% | |||
Ting Virginia, LLC [Member] | Exercisable on Fourth Anniversary of Business Combination [Member] | Exercisable by the Minority Shareholders [Member] | ||||
Note 3 - Acquisitions (Details) [Line Items] | ||||
Business Combination, Consideration to be Transfered upon Exercise of Options per Percentage Point | $ 120,000 | |||
Ting Virginia, LLC [Member] | Derivatives Embedded in Business Combination Agreement [Member] | ||||
Note 3 - Acquisitions (Details) [Line Items] | ||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 3,000,000 | |||
Business Combination, Contingent Consideration, Accrete Discount Rate | 1.60% |
Note 3 - Acquisitions (Detail44
Note 3 - Acquisitions (Details) - Preliminary Purchase Consideration - Ting Virginia, LLC [Member] - USD ($) | Feb. 27, 2015 | Dec. 31, 2015 |
Note 3 - Acquisitions (Details) - Preliminary Purchase Consideration [Line Items] | ||
Cash | $ 3,135,140 | $ 357,492 |
Less refund from working capital adjustment | (50,000) | |
Repayment of debt | 418,775 | |
Redeemable non-controlling interest | 3,000,000 | |
$ 6,503,915 |
Note 3 - Acquisitions (Detail45
Note 3 - Acquisitions (Details) - Purchase Price Allocation - USD ($) | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 |
Intangible assets, including: | |||
Goodwill | $ 21,005,143 | $ 18,873,127 | |
Ting Virginia, LLC [Member] | |||
Note 3 - Acquisitions (Details) - Purchase Price Allocation [Line Items] | |||
Current assets (including cash of $21,423) | $ 338,577 | ||
Current liabilities | (529,702) | ||
Intangible assets, including: | |||
Goodwill | 2,132,016 | ||
Net assets acquired | 6,503,915 | ||
Ting Virginia, LLC [Member] | Fiber Network [Member] | |||
Property and equipment, including: | |||
Property and Equipment | 3,456,024 | ||
Ting Virginia, LLC [Member] | Computer Equipment [Member] | |||
Property and equipment, including: | |||
Property and Equipment | 200,000 | ||
Ting Virginia, LLC [Member] | Furniture and Fixtures [Member] | |||
Property and equipment, including: | |||
Property and Equipment | 5,000 | ||
Ting Virginia, LLC [Member] | Vehicles [Member] | |||
Property and equipment, including: | |||
Property and Equipment | 92,000 | ||
Ting Virginia, LLC [Member] | Leasehold Improvements [Member] | |||
Property and equipment, including: | |||
Property and Equipment | 50,000 | ||
Network Rights [Member] | Ting Virginia, LLC [Member] | |||
Intangible assets, including: | |||
Intangible Assets | 692,000 | ||
Customer Relationships [Member] | Ting Virginia, LLC [Member] | |||
Intangible assets, including: | |||
Intangible Assets | $ 68,000 |
Note 3 - Acquisitions (Detail46
Note 3 - Acquisitions (Details) - Purchase Price Allocation (Parentheticals) | Feb. 27, 2015USD ($) |
Ting Virginia, LLC [Member] | |
Note 3 - Acquisitions (Details) - Purchase Price Allocation (Parentheticals) [Line Items] | |
Cash | $ 21,423 |
Note 4 - Other Assets (Details)
Note 4 - Other Assets (Details) - Summary of Other Assets | Dec. 31, 2014USD ($) |
Note 4 - Other Assets (Details) - Summary of Other Assets [Line Items] | |
Other assets | $ 8,199,000 |
Radix FZC And NameCheap Inc. [Member] | |
Note 4 - Other Assets (Details) - Summary of Other Assets [Line Items] | |
Other assets | 5,074,000 |
Ting Virginia, LLC [Member] | |
Note 4 - Other Assets (Details) - Summary of Other Assets [Line Items] | |
Other assets | $ 3,125,000 |
Note 5 - Property and Equipme48
Note 5 - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Fully Depreciated, Write-down | $ 0.4 | $ 1.7 |
Note 5 - Property and Equipme49
Note 5 - Property and Equipment (Details) - Property and Equipment - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 14,339,622 | $ 7,830,889 |
14,339,622 | 7,830,889 | |
Less: | ||
Accumulated depreciation | 7,212,946 | 6,221,102 |
7,126,676 | 1,609,787 | |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 6,865,906 | 5,902,905 |
6,865,906 | 5,902,905 | |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,171,806 | 1,170,866 |
1,171,806 | 1,170,866 | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,094,455 | 757,118 |
1,094,455 | $ 757,118 | |
Vehicles and Tools [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 275,424 | |
275,424 | ||
Fiber Network [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 4,633,942 | |
4,633,942 | ||
Customer Equipment and Installations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 242,370 | |
242,370 | ||
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 55,719 | |
$ 55,719 |
Note 5 - Property and Equipme50
Note 5 - Property and Equipment (Details) - Depreciation of Property and Equipment - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation of Property and Equipment [Abstract] | |||
Depreciation of property and equipment | $ 1,404,296 | $ 926,102 | $ 843,420 |
Note 6 - Goodwill and Other I51
Note 6 - Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domain Name Service [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 206,116 | ||
Domain Name Services [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 577,145 | $ 0 | |
Minimum [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||
Maximum [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years |
Note 6 - Goodwill and Other I52
Note 6 - Goodwill and Other Intangible Assets (Details) - Goodwill - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $ 21,005,143 | $ 18,873,127 |
Boardtown Corporation [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 2,044,847 | 2,044,847 |
Hosted Messaging Assets of Critical Path [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 4,072,297 | 4,072,297 |
Innerwise Inc. [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5,801,040 | 5,801,040 |
Mailbank.com Inc. [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 6,072,623 | 6,072,623 |
EPAG Domainservices GmbH [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 882,320 | $ 882,320 |
Ting Fiber Inc. [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,426,893 | |
Ting Virginia Inc. [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 705,123 |
Note 6 - Goodwill and Other I53
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances | $ 14,202,585 | $ 15,403,228 | |
Additions to/(disposals from) domain portfolio, net | (24,066) | (26,878) | $ (52,513) |
Impairment of indefinite life intangible assets | (206,116) | (577,145) | |
Amortization expense | (262,726) | (596,620) | (959,910) |
Balances | 14,469,677 | 14,202,585 | 15,403,228 |
Ting Virginia, LLC [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Acquisition of Ting Virginia, LLC (note 3) | 760,000 | ||
Brand [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances | 11,525,624 | 12,096,712 | |
Additions to/(disposals from) domain portfolio, net | (6,815) | (6,490) | |
Impairment of indefinite life intangible assets | (179,454) | (564,598) | |
Balances | 11,339,355 | 11,525,624 | 12,096,712 |
Customer Relationships [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances | 110,510 | 224,650 | |
Amortization expense | (30,840) | (114,140) | |
Balances | 79,670 | 110,510 | 224,650 |
Customer Relationships [Member] | Minimum [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances | 1,941,231 | 1,974,166 | |
Additions to/(disposals from) domain portfolio, net | (17,251) | (20,388) | |
Impairment of indefinite life intangible assets | (26,662) | (12,547) | |
Balances | 1,897,318 | 1,941,231 | 1,974,166 |
Customer Relationships [Member] | Maximum [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Balances | 625,220 | 1,107,700 | |
Amortization expense | (193,366) | (482,480) | |
Balances | 499,854 | $ 625,220 | $ 1,107,700 |
Customer Relationships [Member] | Maximum [Member] | Ting Virginia, LLC [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Acquisition of Ting Virginia, LLC (note 3) | 68,000 | ||
Network Rights [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Amortization expense | (38,520) | ||
Balances | 653,480 | ||
Network Rights [Member] | Ting Virginia, LLC [Member] | |||
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class [Line Items] | |||
Acquisition of Ting Virginia, LLC (note 3) | $ 692,000 |
Note 6 - Goodwill and Other I54
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (Parentheticals) | 12 Months Ended |
Dec. 31, 2015 | |
Brand [Member] | |
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (Parentheticals) [Line Items] | |
Amortization period | 7 years |
Customer Relationships [Member] | Minimum [Member] | |
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (Parentheticals) [Line Items] | |
Amortization period | 4 years |
Customer Relationships [Member] | Maximum [Member] | |
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (Parentheticals) [Line Items] | |
Amortization period | 7 years |
Network Rights [Member] | |
Note 6 - Goodwill and Other Intangible Assets (Details) - Acquired Intangible Assets by Major Class (Parentheticals) [Line Items] | |
Amortization period | 15 years |
Note 6 - Goodwill and Other I55
Note 6 - Goodwill and Other Intangible Assets (Details) - Estimated Future Amortization Expense of Intangible Assets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated Future Amortization Expense of Intangible Assets [Abstract] | ||
2,016 | $ 274,116 | |
2,017 | 274,116 | |
2,018 | 169,676 | |
2,019 | 46,128 | |
2,020 | 46,128 | |
Thereafter | 422,840 | |
Total | $ 1,233,004 | $ 735,730 |
Note 7 - Fair Value Measureme56
Note 7 - Fair Value Measurement (Details) - Summary of the Fair Values of the Company's Derivative Instrument Liabilities - Fair Value, Measurements, Recurring [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 7 - Fair Value Measurement (Details) - Summary of the Fair Values of the Company's Derivative Instrument Liabilities [Line Items] | ||
Derivative instrument liability | $ 2,027,086 | $ 1,115,805 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 7 - Fair Value Measurement (Details) - Summary of the Fair Values of the Company's Derivative Instrument Liabilities [Line Items] | ||
Derivative instrument liability | $ 2,027,086 | $ 1,115,805 |
Note 8 - Derivative Instrumen57
Note 8 - Derivative Instruments and Hedging Activities (Details) - Forward Contracts [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 8 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | $ 24,000,000 | $ 26,200,000 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (500,000) | (300,000) |
Designated as Hedging Instrument [Member] | ||
Note 8 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Notional Amount | 20,300,000 | 22,300,000 |
Not Designated as Hedging Instrument [Member] | ||
Note 8 - Derivative Instruments and Hedging Activities (Details) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (100,000) | $ 50,000 |
Note 8 - Derivative Instrumen58
Note 8 - Derivative Instruments and Hedging Activities (Details) - Fair Value of Derivative Instruments in the Consolidated Balance Sheets - Derivative Instruments [Member] - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | $ (2,027,086) | $ (1,115,805) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | (1,721,683) | (946,676) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts | $ (305,403) | $ (169,129) |
Note 8 - Derivative Instrumen59
Note 8 - Derivative Instruments and Hedging Activities (Details) - Movement in AOCI Balance - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in AOCI Balance [Abstract] | |||
Opening AOCI balance | $ (946,676) | $ (372,593) | |
Opening AOCI balance | 324,235 | 127,612 | |
Opening AOCI balance | (622,441) | (244,981) | |
Other comprehensive income (loss)before reclassifications | (3,171,740) | (1,527,171) | |
Other comprehensive income (loss)before reclassifications | 1,140,275 | 523,056 | |
Other comprehensive income (loss)before reclassifications | (2,031,465) | (1,004,115) | $ (470,779) |
Amount reclassified from accumulated other comprehensive income | 2,396,733 | 953,088 | |
Amount reclassified from accumulated other comprehensive income | (852,279) | (326,433) | |
Amount reclassified from accumulated other comprehensive income | 1,544,454 | 626,655 | 181,694 |
Other comprehensive income (loss) | (775,007) | (574,083) | |
Other comprehensive income (loss) | 287,996 | 196,623 | |
Other comprehensive income (loss) | (487,011) | (377,460) | |
Ending AOCI balance | (1,721,683) | (946,676) | (372,593) |
Ending AOCI balance | 612,231 | 324,235 | 127,612 |
Ending AOCI balance | $ (1,109,452) | $ (622,441) | $ (244,981) |
Note 8 - Derivative Instrumen60
Note 8 - Derivative Instruments and Hedging Activities (Details) - Effects of Derivative Instruments on Income and Other Comprehensive Income (OCI) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, net of tax, (Effective Portion) | $ (1,205,554) | $ (463,160) |
Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI, net of tax, on Derivative (Effective Portion) | (487,011) | (377,460) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income, net of tax, (Effective Portion) | (338,900) | (163,495) |
Amount of Gain or (Loss) Recognized in Income on Derivative (ineffective Portion and Amount Excluded from Effectiveness), net of tax | $ (189,526) | $ (13,535) |
Note 9 - Loan Payable (Details)
Note 9 - Loan Payable (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Sep. 30, 2015 | |
Note 9 - Loan Payable (Details) [Line Items] | ||
Line of Credit Facility, Covenant Period | 18 months | |
Foreign Exchange Risk [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,500,000 | |
Derivative Asset, Fair Value, Gross Asset | 24,000,000 | |
Operating Demand Loan [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |
Debt Instrument, Fee Amount | 500 | |
Long-term Line of Credit | $ 0 | |
Base Rate [Member] | Operating Demand Loan [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
2012 Demand Loan Facilities [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 14,000,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | |
DLR Loan [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Term | 30 days | |
Long-term Debt | $ 3,500,000 | |
DLR Loan [Member] | Base Rate [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
2012 DLRR Loan [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Term | 4 years | |
2012 DLRR Loan [Member] | Base Rate [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
2012 DLRR Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Amended Credit Facility [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Maximum Total Funded Debt To EBITDA Ratio | 2 | |
Minimum Fixed Charge Coverage | 1.20 | |
Line of Credit Facility Maximum Annual Capital Expenditure Ceiling | $ 3,600,000 | |
Maximum [Member] | 2012 Demand Loan Facilities [Member] | ||
Note 9 - Loan Payable (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 14,000,000 | |
Line of Credit Facility Share Repurchase Limit | $ 2,000,000 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ||
Unrecognized Tax Benefits | $ 117,000 | $ 117,000 | $ 117,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 |
Note 10 - Income Taxes (Detai63
Note 10 - Income Taxes (Details) - Provision for Income Taxes Differs from the Amount Computed by Applying the Statutory Federal Income Tax Rate - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Provision for Income Taxes Differs from the Amount Computed by Applying the Statutory Federal Income Tax Rate [Abstract] | |||
Income for the year before provision for income taxes | $ 17,942,957 | $ 9,428,325 | $ 5,799,803 |
Computed expected tax expense | 6,100,605 | 3,205,631 | 1,971,933 |
Increase (reduction) in income tax expense resulting from: | |||
State income taxes | 265,489 | 64,056 | 14,500 |
Permanent differences, including foreign exchange | 278,959 | 192,260 | 13,700 |
Investment tax credits recovered | (115,455) | ||
Other, including alternative minimum tax and adjustments to opening deferred tax assets | (75,826) | (407,718) | (265,339) |
Provision for income taxes | $ 6,569,227 | $ 3,054,229 | $ 1,619,339 |
Note 10 - Income Taxes (Detai64
Note 10 - Income Taxes (Details) - Tax Effects of Temporary Differences That Give Rise to Significant Portions of the Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Deferred revenue | $ 5,454,284 | $ 5,294,767 |
Foreign tax credit | 1,529,075 | 3,200,961 |
Amortization | (883,466) | (414,345) |
Accruals, including foreign exchange and other | 1,521,199 | (702,764) |
Deferred tax assets | 7,621,092 | 7,378,619 |
Deferred income tax asset, current portion | 3,243,718 | 2,498,196 |
Deferred income tax asset, long-term portion | 4,377,374 | 4,880,423 |
7,621,092 | 7,378,619 | |
Deferred tax liabilities: | ||
Limited life intangible assets | (169,731) | (208,620) |
Indefinite life intangible assets | (4,706,960) | (4,578,731) |
Total deferred tax liability, long-term portion | $ (4,876,691) | $ (4,787,351) |
Note 10 - Income Taxes (Detai65
Note 10 - Income Taxes (Details) - Unrecognized Tax Benefits - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unrecognized Tax Benefits [Abstract] | ||
Balance, beginning of year | $ 117,000 | $ 117,000 |
Change in uncertain tax benefits | 0 | 0 |
Balance, end of year | $ 117,000 | $ 117,000 |
Note 11 - Common Shares (Detail
Note 11 - Common Shares (Details) | Jan. 07, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)shares | Jun. 30, 2015USD ($)shares | Mar. 31, 2015USD ($)shares | Sep. 30, 2014USD ($)shares | Mar. 31, 2014USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Feb. 11, 2015USD ($) | Mar. 05, 2014USD ($) |
Note 11 - Common Shares (Details) [Line Items] | ||||||||||||
Common Stock, Shares Authorized | shares | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||
Common Stock, Shares, Outstanding | shares | 11,135,825 | 10,685,599 | 10,685,599 | 11,329,732 | ||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 4 | |||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 1,062,456 | 79,392 | 1,064,299 | |||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ | $ 23,616,286 | $ 1,181,858 | $ 6,537,616 | |||||||||
Common Stock, Shares, Issued | shares | 11,135,825 | 10,685,599 | 10,685,599 | 11,329,732 | ||||||||
Shares Paid for Tax Withholding for Share Based Compensation | shares | 99,675 | 99,675 | ||||||||||
Shares Paid for Tax Withholding for Share Based Compensation, Price per Share, Fair Value (in Dollars per share) | $ / shares | $ 23.43 | |||||||||||
Shares Paid for Tax Withholding for Share Based Compensation, Fair Value (in Dollars) | $ | $ 2,300,000 | |||||||||||
Dutch Auction Tender Offer [Member] | ||||||||||||
Note 11 - Common Shares (Details) [Line Items] | ||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 193,907 | |||||||||||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $ / shares | $ 18.50 | |||||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ | $ 3,587,280 | |||||||||||
Stock Repurchased Transaction Costs (in Dollars) | $ | $ 70,000 | |||||||||||
Stock Buyback Program 2015 [Member] | ||||||||||||
Note 11 - Common Shares (Details) [Line Items] | ||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 231,047 | 398,000 | 25,413 | 214,089 | 868,549 | |||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ | $ 5,400,000 | $ 10,000,000 | $ 500,000 | $ 4,100,000 | $ 20,000,000 | |||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ | $ 20,000,000 | |||||||||||
Stock Buyback Program 2014 [Member] | ||||||||||||
Note 11 - Common Shares (Details) [Line Items] | ||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 73,300 | 6,092 | 79,392 | |||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | $ | $ 1,100,000 | $ 82,286 | $ 1,200,000 | |||||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | $ | $ 20,000,000 |
Note 11 - Common Shares (Deta67
Note 11 - Common Shares (Details) - Share Repurchases - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock repurchased on the open market or through tender offer | ||||
Number of shares | 1,062,456 | 79,392 | 1,064,299 | |
Aggregate market value of shares (in thousands) | $ 23,616,286 | $ 1,181,858 | $ 6,537,616 | |
Average price per share | $ 22.23 | $ 14.89 | $ 6.14 | |
Common stock received in connection with share-based compensation | ||||
Number of shares | 99,675 | 99,675 | ||
Aggregate market value of shares (in thousands) | $ 2,335,000 | |||
Average price per share | $ 23.42 |
Note 12 - Stock Option Plans (D
Note 12 - Stock Option Plans (Details) - USD ($) | Oct. 08, 2010 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 1996 | Dec. 31, 2015 | Nov. 22, 2006 |
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 67,500 | 102,475 | 180,375 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 500,000 | $ 900,000 | $ 1,100,000 | |||||
Proceeds from Stock Options Exercised | 803,136 | 1,478,924 | 1,492,174 | |||||
Allocated Share-based Compensation Expense | 526,025 | $ 542,738 | $ 430,903 | |||||
The 1996 Plan [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 2,787,500 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | |||||||
The 2006 Plan [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 1,725,000 | 2,475,000 | 1,250,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | 475,000 | 750,000 | ||||||
Employee Stock Option [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 900,000 | $ 900,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | |||||||
Employee Stock Option [Member] | The 1996 Plan [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Employee Stock Option [Member] | The 2006 Plan [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Automatic Formula Grants of Non-qualified Stock Options [Member] | The 2006 Plan [Member] | ||||||||
Note 12 - Stock Option Plans (Details) [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
Note 12 - Stock Option Plans 69
Note 12 - Stock Option Plans (Details) - Fair Value of Stock Options Granted - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value of Stock Options Granted [Abstract] | |||
Volatility | 44.10% | 56.10% | 69.40% |
Risk-free interest rate | 1.30% | 1.30% | 1.10% |
Expected life (in years) | 4 years | 4 years | 4 years |
The weighted average grant date fair value for options issued, with the exercise price equal to market value on the date of grant (in Dollars per share) | $ 7.40 | $ 7.02 | $ 4.52 |
Note 12 - Stock Option Plans 70
Note 12 - Stock Option Plans (Details) - Stock Option Transactions - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Transactions [Abstract] | |||
Outstanding, beginning of year | 976,062 | 1,407,639 | 2,148,170 |
Outstanding, beginning of year | $ 5.41 | $ 3.80 | $ 2.56 |
Granted | 67,500 | 102,475 | 180,375 |
Granted | $ 21.26 | $ 15.78 | $ 8.36 |
Exercised | (517,998) | (502,061) | (890,034) |
Exercised | $ 3.53 | $ 2.95 | $ 1.80 |
Forfeited | (10,323) | (28,366) | (29,684) |
Forfeited | $ 13.30 | $ 6.60 | $ 4.88 |
Expired | (1,875) | (3,625) | (1,188) |
Expired | $ 2.40 | $ 3.36 | $ 1.44 |
Outstanding, end of year | 513,366 | 976,062 | 1,407,639 |
Outstanding, end of year | $ 9.24 | $ 5.41 | $ 3.80 |
Options exercisable, end of year | 321,155 | 725,392 | 1,045,475 |
Options exercisable, end of year | $ 6.49 | $ 4.03 | $ 3.14 |
Note 12 - Stock Option Plans 71
Note 12 - Stock Option Plans (Details) - Summary of Exercise Prices, Weighted Average Remaining Contractual Life and Intrinsic Values of Outstanding Options - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in Shares) | 513,366 | 976,062 | 1,407,639 | 2,148,170 |
Weighted average exercise price per share, options outstanding | $ 9.24 | $ 5.41 | $ 3.80 | $ 2.56 |
Weighted average remaining contractual life (years), options outstanding | 3 years 219 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | $ 6,175,024 | |||
Number exercisable (in Shares) | 321,155 | 725,392 | 1,045,475 | |
Weighted average exercise price per share, options exercisable | $ 6.49 | $ 4.03 | $ 3.14 | |
Weighted average remaining contractual life (years), options exercisable | 2 years 292 days | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $ 4,692,919 | |||
Exercise Price Range 01 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $ 2.80 | |||
Exercise price - higher | $ 2.92 | |||
Number outstanding (in Shares) | 118,490 | |||
Weighted average exercise price per share, options outstanding | $ 2.84 | |||
Weighted average remaining contractual life (years), options outstanding | 1 year 292 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | $ 2,163,787 | |||
Number exercisable (in Shares) | 118,490 | |||
Weighted average exercise price per share, options exercisable | $ 2.84 | |||
Weighted average remaining contractual life (years), options exercisable | 1 year 292 days | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $ 2,163,787 | |||
Exercise Price Range 02 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $ 3 | |||
Exercise price - higher | $ 5.76 | |||
Number outstanding (in Shares) | 148,348 | |||
Weighted average exercise price per share, options outstanding | $ 5.18 | |||
Weighted average remaining contractual life (years), options outstanding | 2 years 292 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | $ 2,361,720 | |||
Number exercisable (in Shares) | 110,841 | |||
Weighted average exercise price per share, options exercisable | $ 5.08 | |||
Weighted average remaining contractual life (years), options exercisable | 2 years 6 months | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $ 1,775,898 | |||
Exercise Price Range 03 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $ 8.56 | |||
Exercise price - higher | $ 10.16 | |||
Number outstanding (in Shares) | 92,253 | |||
Weighted average exercise price per share, options outstanding | $ 9.05 | |||
Weighted average remaining contractual life (years), options outstanding | 4 years 73 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | $ 1,111,453 | |||
Number exercisable (in Shares) | 43,374 | |||
Weighted average exercise price per share, options exercisable | $ 8.92 | |||
Weighted average remaining contractual life (years), options exercisable | 3 years 328 days | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $ 528,510 | |||
Exercise Price Range 04 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise price - lower | $ 14.67 | |||
Exercise price - higher | $ 24.96 | |||
Number outstanding (in Shares) | 154,275 | |||
Weighted average exercise price per share, options outstanding | $ 18.18 | |||
Weighted average remaining contractual life (years), options outstanding | 5 years 109 days | |||
Aggregate intrinsic value, options outstanding (in Dollars) | $ 538,064 | |||
Number exercisable (in Shares) | 48,450 | |||
Weighted average exercise price per share, options exercisable | $ 16.46 | |||
Weighted average remaining contractual life (years), options exercisable | 4 years 292 days | |||
Aggregate intrinsic value, options exercisable (in Dollars) | $ 224,724 |
Note 12 - Stock Option Plans 72
Note 12 - Stock Option Plans (Details) - Stock-based Compensation Allocation to Operating Expenses - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 526,025 | $ 542,738 | $ 430,903 |
Network Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 28,915 | 30,938 | 31,664 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 188,035 | 143,514 | 129,302 |
Technical Operations and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | 111,239 | 85,904 | 78,800 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Allocated share-based compensation expense | $ 197,836 | $ 282,382 | $ 191,137 |
Note 13 - Foreign Exchange Ga73
Note 13 - Foreign Exchange Gain (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and Administrative Expense [Member] | |||
Note 13 - Foreign Exchange Gain (Details) [Line Items] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (0.3) | $ (0.3) | $ 0.3 |
Note 14 - Other Income, Net (De
Note 14 - Other Income, Net (Details) - Joint Marketing Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Nov. 30, 2015 | Dec. 31, 2015 | |
Note 14 - Other Income, Net (Details) [Line Items] | ||
Other Nonrecurring Gain | $ 1.5 | |
Other Nonrecurring Gain, Term of Recognition | 3 years | |
Recognized During the Current Year [Member] | ||
Note 14 - Other Income, Net (Details) [Line Items] | ||
Other Nonrecurring Gain | $ 0.1 |
Note 15 - Earnings Per Common75
Note 15 - Earnings Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 75,050 | 95,762 | 136,812 |
Note 15 - Earnings Per Common76
Note 15 - Earnings Per Common Share (Details) - Summary of Basic and Diluted Earnings Per Common Share - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator for basic and diluted earnings per common share: | |||
Net income for the year (in Dollars) | $ 11,373,730 | $ 6,374,096 | $ 4,180,464 |
Denominator for basic and diluted earnings per common share: | |||
Basic weighted average number of common shares outstanding | 10,968,500 | 11,220,874 | 10,468,250 |
Effect of stock options | 391,584 | 509,524 | 813,159 |
Diluted weighted average number of shares outstanding | 11,360,084 | 11,730,398 | 11,281,409 |
Basic earnings per common share (in Dollars per share) | $ 1.04 | $ 0.57 | $ 0.40 |
Diluted earnings per common share (in Dollars per share) | $ 1 | $ 0.54 | $ 0.37 |
Note 16 - Commitments and Con77
Note 16 - Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 09, 2015 | |
Note 16 - Commitments and Contingencies (Details) [Line Items] | ||||
Operating Leases, Rent Expense | $ 1,000,000 | $ 900,000 | $ 800,000 | |
Guarantee Obligations [Member] | Lease and Network Operations Agreement [Member] | Ting Fiber Inc. [Member] | ||||
Note 16 - Commitments and Contingencies (Details) [Line Items] | ||||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall, Difference, Lower Threshold | $ 50,000 | |||
Loss Contingency, Debt Service Guarantee, Revenue Shortfall, Difference, Upper Threshold | $ 150,000 |
Note 16 - Commitments and Con78
Note 16 - Commitments and Contingencies (Details) - Summary of General Office Facilities and Equipment | Dec. 31, 2015USD ($) |
Summary of General Office Facilities and Equipment [Abstract] | |
2,016 | $ 973,000 |
2,016 | 9,279,000 |
2,016 | 10,252,000 |
2,017 | 989,000 |
2,017 | 12,713,000 |
2,017 | 13,702,000 |
2,018 | 1,020,000 |
2,018 | 443,000 |
2,018 | 1,463,000 |
2,019 | 1,003,000 |
2,019 | 1,003,000 |
2,020 | 991,000 |
2,020 | 991,000 |
Thereafter | 1,188,000 |
Thereafter | 1,188,000 |
6,164,000 | |
22,435,000 | |
$ 28,599,000 |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details) $ in Millions | Feb. 09, 2016USD ($) |
Subsequent Event [Member] | Stock Buyback Program 2016 [Member] | |
Note 17 - Subsequent Events (Details) [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 40 |
Note 18 - Segment Reporting (De
Note 18 - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Note 18 - Segment Reporting (81
Note 18 - Segment Reporting (Details) - Information by Reportable Segments - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | $ 172,939,499 | $ 147,667,107 | $ 129,934,904 | |
Cost of revenues | ||||
Cost of Revenues | 113,089,970 | 101,861,002 | 92,960,321 | |
Network expenses | 5,464,777 | 4,554,635 | 4,835,939 | |
Depreciation of property and equipment | 1,144,989 | 699,670 | 627,973 | |
Amortization of intangibles | 38,520 | 83,790 | ||
Total cost of revenues | 119,738,256 | 107,115,307 | 98,508,023 | |
Gross Profit | 53,201,243 | 40,551,800 | 31,426,881 | |
Expenses: | ||||
Sales and marketing | 18,537,810 | 15,394,065 | 12,141,036 | |
Technical operations and development | 4,502,845 | 4,305,715 | 4,158,603 | |
General and administrative | 10,661,949 | 9,459,008 | 7,523,906 | |
Depreciation of property and equipment | 259,307 | 226,432 | 215,447 | |
Amortization of intangibles | 224,206 | 596,620 | 876,120 | |
Write-off / impairment of indefinite life intangible assets | 206,116 | 577,145 | ||
Loss on currency forward contracts | 792,900 | 357,760 | 357,109 | |
Income from operations | 18,016,110 | 9,635,055 | 6,154,660 | |
Other income expenses, net | (73,153) | (206,730) | (354,857) | |
Income before provision for income taxes | 17,942,957 | 9,428,325 | 5,799,803 | |
Network Access Services [Member] | ||||
Cost of revenues | ||||
Cost of Revenues | 34,242,854 | 21,870,780 | 12,621,093 | |
Network expenses | 5,464,777 | 4,554,635 | 4,835,939 | |
Amortization of intangibles | 1,183,509 | 699,670 | 711,763 | |
Domain Name Services [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | 110,760,866 | 111,780,102 | 113,404,667 | |
Cost of revenues | ||||
Cost of Revenues | 78,847,116 | 79,990,222 | 80,339,228 | |
Network expenses | 4,858,726 | 4,554,635 | 4,835,939 | |
Depreciation of property and equipment | 697,343 | 699,670 | 627,973 | |
Amortization of intangibles | 83,790 | |||
Total cost of revenues | 84,403,185 | 85,244,527 | 85,886,930 | |
Gross Profit | 26,357,681 | 26,535,575 | 27,517,737 | |
Mobile Services [Member] | Network Access Services [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | [1] | 58,889,922 | 35,887,005 | 16,530,237 |
Cost of revenues | ||||
Cost of Revenues | [1] | 32,615,416 | $ 21,870,780 | $ 12,621,093 |
Network expenses | [1] | $ 495 | ||
Depreciation of property and equipment | [1] | |||
Amortization of intangibles | [1] | |||
Total cost of revenues | [1] | $ 32,615,911 | $ 21,870,780 | $ 12,621,093 |
Gross Profit | [1] | 26,274,011 | $ 14,016,225 | $ 3,909,144 |
Other Services [Member] | Network Access Services [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net Revenues | [1] | 3,288,711 | ||
Cost of revenues | ||||
Cost of Revenues | [1] | 1,627,438 | ||
Network expenses | [1] | 605,556 | ||
Depreciation of property and equipment | [1] | 447,646 | ||
Amortization of intangibles | [1] | 38,520 | ||
Total cost of revenues | [1] | 2,719,160 | ||
Gross Profit | [1] | $ 569,551 | ||
[1] | Network access includes Mobile Services and Other Services. Other Services includes the provisioning of high speed Internet access, Internet hosting and network consulting services. |
Note 18 - Segment Reporting (82
Note 18 - Segment Reporting (Details) - Summary of the Company's Revenue Earned from Each Significant Revenue Stream - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Network Access Services: | |||
Operating revenues | $ 172,939,499 | $ 147,667,107 | $ 129,934,904 |
Network Access Services [Member] | |||
Network Access Services: | |||
Operating revenues | 62,178,633 | 35,887,005 | 16,530,237 |
Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | 110,760,866 | 111,780,102 | 113,404,667 |
Mobile Services [Member] | Network Access Services [Member] | |||
Network Access Services: | |||
Operating revenues | 58,889,922 | 35,887,005 | 16,530,237 |
Other Services [Member] | Network Access Services [Member] | |||
Network Access Services: | |||
Operating revenues | 3,288,711 | ||
Wholesale [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | 94,279,950 | 96,295,683 | 97,565,392 |
Wholesale [Member] | Domain Services [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | 84,982,007 | 86,640,949 | 87,294,173 |
Wholesale [Member] | Value Added Services [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | 9,297,943 | 9,654,734 | 10,271,219 |
Retail [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | 12,341,013 | 10,417,746 | 8,360,035 |
Portfolio [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Operating revenues | $ 4,139,903 | $ 5,066,673 | $ 7,479,240 |
Note 18 - Segment Reporting (83
Note 18 - Segment Reporting (Details) - Summary of the Company's Cost of Revenues from Each Significant Revenue Stream - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Network Access Services: | |||
Cost of services | $ 113,089,970 | $ 101,861,002 | $ 92,960,321 |
Network Expenses: | |||
Network, other costs | 5,464,777 | 4,554,635 | 4,835,939 |
Network, depreciation and amortization costs | 38,520 | 83,790 | |
119,738,256 | 107,115,307 | 98,508,023 | |
Network Access Services [Member] | |||
Network Access Services: | |||
Cost of services | 34,242,854 | 21,870,780 | 12,621,093 |
Network Expenses: | |||
Network, other costs | 5,464,777 | 4,554,635 | 4,835,939 |
Network, depreciation and amortization costs | 1,183,509 | 699,670 | 711,763 |
6,648,286 | 5,254,305 | 5,547,702 | |
Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | 78,847,116 | 79,990,222 | 80,339,228 |
Network Expenses: | |||
Network, other costs | 4,858,726 | 4,554,635 | 4,835,939 |
Network, depreciation and amortization costs | 83,790 | ||
84,403,185 | 85,244,527 | 85,886,930 | |
Mobile Services [Member] | Network Access Services [Member] | |||
Network Access Services: | |||
Cost of services | 32,615,415 | 21,870,780 | 12,621,093 |
Other Services [Member] | Network Access Services [Member] | |||
Network Access Services: | |||
Cost of services | 1,627,439 | ||
Wholesale [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | 72,656,831 | 74,564,146 | 75,583,991 |
Wholesale [Member] | Domain Services [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | 70,763,964 | 72,353,061 | 73,468,824 |
Wholesale [Member] | Value Added Services [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | 1,892,867 | 2,211,085 | 2,115,167 |
Retail [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | 5,473,102 | 4,539,439 | 3,521,023 |
Portfolio [Member] | Domain Name Services [Member] | |||
Network Access Services: | |||
Cost of services | $ 717,183 | $ 886,637 | $ 1,234,214 |
Note 18 - Segment Reporting (84
Note 18 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 18 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | $ 7,126,676 | $ 1,609,787 |
CANADA | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | 1,225,236 | 1,131,883 |
UNITED STATES | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | 5,847,666 | 379,891 |
GERMANY | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Property and Equipment by Geographic Region [Line Items] | ||
Property, plant and equipment | $ 53,774 | $ 98,013 |
Note 18 - Segment Reporting (85
Note 18 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 18 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | $ 1,233,004 | $ 735,730 |
UNITED STATES | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | 702,594 | |
GERMANY | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Amortizable Intangible Assets by Geographic Region [Line Items] | ||
Amortizable intangible assets | $ 530,410 | $ 735,730 |
Note 18 - Segment Reporting (86
Note 18 - Segment Reporting (Details) - Summary of Company's Deferred Tax Asset, Net of Valuation Allowance - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 18 - Segment Reporting (Details) - Summary of Company's Deferred Tax Asset, Net of Valuation Allowance [Line Items] | ||
Deferred tax assets | $ 7,621,092 | $ 7,378,619 |
CANADA | ||
Note 18 - Segment Reporting (Details) - Summary of Company's Deferred Tax Asset, Net of Valuation Allowance [Line Items] | ||
Deferred tax assets | $ 7,621,092 | $ 7,378,619 |
Note 18 - Segment Reporting (87
Note 18 - Segment Reporting (Details) - Summary of Valuation and Qualifying Accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts, excluding provision for credit notes | |||
Balance at beginning of period | $ 125,766 | $ 91,226 | $ 73,970 |
Charged to (recovered) costs and expenses | (3,671) | 34,540 | 17,256 |
Balance at end period | $ 122,095 | $ 125,766 | $ 91,226 |